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ALTO — Alto Ingredients News Story

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Brief: Alto Ingredients Q2 EPS USD -0.15

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

MetricBeat/MissActualConsensus Estimate
Q2 SalesMiss$218.40 mln$223.60 mln (2 Analysts)
Q2 EPS-$0.15
Q2 Net Income-$11.30 mln
Q2 Adjusted EBITDAMiss-$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.)

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