By Will Feuer
Shares of MGP Ingredients fell after the whiskey maker issued a soft 2024 sales outlook, citing bloated inventory at distributors and other challenges for the broader industry.
The stock fell nearly 15% to $78.33 on Thursday. Over the past year, shares are down more than 18% and are now trading at a 52-week low.
The company, based in Atchison, Kan., is targeting fiscal-year sales of $742 million to $756 million, below the $787.8 million that analysts surveyed by FactSet expected. The company’s fourth-quarter results topped analysts’ expectations.
The broader branded spirits category has softened following the “Covid super cycle,” Chief Executive David Bratcher told analysts on a conference call. Wholesale distributors are also still working through inventory that piled up in recent years.
Still, Bratcher said the company is assured by continued growth in American whiskey and other categories, including tequila.
Write to Will Feuer at Will.Feuer@wsj.com
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