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Shares of Alto Ingredients (NASDAQ:ALTO) fell as much as 61.8% to a session low of $1.88 on Tuesday after the company’s mixed third quarter results failed to impress Wall Street.
The specialty alcohol and ingredients producer on Monday after the bell reported Q3 net sales of $318.1 million, beating estimates of $314.9 million. However, net loss per share was 5 cents vs. estimates of 12 cents in profit.
During a call with analysts, the company said it did not generate the results it anticipated due to unusually high unscheduled downtime, which lowered their anticipated production volumes and shifted mix towards lower-margin products, combined with higher repair and maintenance costs.
Seeking Alpha contributor and Investing Group leader, Henrik Alex, wrote in his latest report on the company, “Given poor execution, weak near-term prospects, and increased uncertainties regarding the company’s ambitious long-term profitability enhancement roadmap, investors should avoid Alto Ingredients’ shares for the time being”.
Key metrics: cost of goods sold $314 million vs. $356.7 million; gross profit $4.2 million vs. gross loss of $19.8 million; selling, general, and administrative expenses $8.5 million vs. $7.4 million; operating loss $4.3 million vs. $27.2 million.
The Pekin, Illinois-based company recorded a net loss, including certain items, of $3.8 million compared to a loss of $28.4 million last year.
ALTO stock has fallen 51.7% in the last 12 months.
