Alto Ingredients (NASDAQ:ALTO) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Alto Ingredients (NASDAQ:ALTO) issued its quarterly earnings data on Wednesday. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.07, FiscalAI reports. The business had revenue of $257.89 million for the quarter, compared to analysts’ expectations of $250.97 million. Alto Ingredients had a return on equity of 18.54% and a net margin of 5.51%.

Here are the key takeaways from Alto Ingredients’ conference call:

• Alto reported a fifth consecutive quarter of positive gross profit, operating income, net income, and adjusted EBITDA, with adjusted EBITDA of $21 million in Q3. Management attributed the results to core operations, with 45Z credits providing additional support.
• Gross profit fell $8.7 million year over year to $14.8 million, primarily as the industry crush margin declined to $0.30 per gallon from $0.41; SG&A also rose $1.3 million. The lower margin reflects an $0.11-per-gallon decline in market crush.
• Management expects at least $20 million in net 2026 45Z tax credit earnings, with 90 million or more qualifying gallons, and plans to monetize the credits in the first half of 2027. A new three-year farmer cooperative agreement covering up to 20 million bushels of low-carbon corn is expected to contribute modestly in 2026, with greater potential in 2027.
• Cash from operations was $13 million in Q3, and Alto paid down $6.5 million on its line of credit; year-to-date, it reduced total debt by $26.5 million. The company remains on track for $25 million in 2026 capital spending, including projects to lift Pekin capacity by about 8% and improve logistics and CO? storage.
• Management sees potential demand and margin support from California’s new E15 legislation, estimating adoption could add 600 million or more gallons of annual ethanol demand over time. Alto shifted sales toward the domestic market, which currently offers better economics than Europe, while saying export opportunities may improve in 2027.

Alto Ingredients Trading Up 7.6%

Shares of NASDAQ:ALTO traded up $0.27 during trading on Thursday, hitting $3.77. The company had a trading volume of 287,236 shares, compared to its average volume of 1,767,007. The stock has a market cap of $292.21 million, a price-to-earnings ratio of 5.64 and a beta of 0.13. Alto Ingredients has a one year low of $1.30 and a one year high of $6.11. The company has a fifty day simple moving average of $3.79 and a two-hundred day simple moving average of $4.27. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.19 and a quick ratio of 2.17.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c)” rating on shares of Alto Ingredients in a research report on Thursday, October 29th. HC Wainwright reiterated a “buy” rating on shares of Alto Ingredients in a research report on Thursday, August 6th. Benchmark raised shares of Alto Ingredients to a “strong-buy” rating in a research note on Wednesday, September 30th. Finally, Scotiabank set a $10.00 price objective on shares of Alto Ingredients in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $10.00.

Insider Activity at Alto Ingredients

In related news, Director Gilbert Nathan purchased 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were bought at an average price of $4.15 per share, for a total transaction of $207,500.00. Following the acquisition, the director owned 856,393 shares of the company’s stock, valued at approximately $3,554,030.95. This represents a 6.20% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 4.28% of the company’s stock.

About Alto Ingredients

Alto Ingredients, Inc (NASDAQ:ALTO) is a renewable fuels and specialty ingredients company that produces low-carbon ethanol and other products derived primarily from corn. Its ethanol is used as a transportation fuel and as a blending component in gasoline, while the company’s operations support markets focused on renewable energy and lower-carbon fuel alternatives.

In addition to ethanol, Alto Ingredients produces and markets co-products such as dried distillers grains, wet distillers grains and renewable corn oil.