Specialty alcohols and renewable fuels distributor Alto Ingredients' Q2 sales miss estimates

Reuters08-07
Specialty alcohols and renewable fuels distributor <a href="https://laohu8.com/S/ALTO">Alto Ingredients</a>' <a href="https://laohu8.com/S/QTWO">Q2</a> sales miss estimates

Overview

  • Alto Ingredients Q2 sales fell 8% yr/yr, missing analyst expectations, per LSEG data

  • Adjusted EBITDA for Q2 was negative, missing analyst expectations, per LSEG data

  • Company attributes financial challenges to market conditions and operational disruptions

Outlook

  • Alto Ingredients expects 45Z credit extension to improve earnings profile

  • Company plans to apply for credits up to $18 mln in two years

  • Alto Ingredients to increase CO2 utilization at Pekin and Columbia

Result Drivers

  • OPERATIONAL DISRUPTIONS - Loading dock outage at Pekin partially offset by selling higher-margin ISCC export products into Europe

  • STRATEGIC DECISIONS - Cold-idling Magic Valley facility due to adverse market factors and acquiring liquid CO2 facility positively impacted Western assets

  • REGULATORY DEVELOPMENTS - Extension of 45Z credit through 2029 improves earnings profile and offers potential credits for two plants

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$218.40 mln

$223.60 mln (2 Analysts)

Q2 EPS

-$0.15

Q2 Net Income

-$11.30 mln

Q2 Adjusted EBITDA

Miss

-$200,000

$4.27 mln (2 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the renewable fuels peer group is "buy"

  • Wall Street's median 12-month price target for Alto Ingredients Inc is $4.00, about 74% above its August 5 closing price of $1.04

Press Release: ID:nGNXbdghH0

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment