Food and beverage supplier MGP Ingredients (NASDAQGS:MGPI) will be announcing earnings results tomorrow before market hours. Here's what you need to know.

MGP Ingredients beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $214.9 million, up 12.5% year on year. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates but full-year revenue guidance missing analysts' expectations.

Is MGP Ingredients a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting MGP Ingredients's revenue to decline 15.3% year on year to $170.3 million, a reversal from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MGP Ingredients has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.7% on average.

Looking at MGP Ingredients's peers in the beverages and alcohol segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 1.6%, and Constellation Brands reported revenues up 7.1%, topping estimates by 2%. Keurig Dr Pepper traded up 4.3% following the results while Constellation Brands was down 1%.

Read our full analysis of Keurig Dr Pepper's results here and Constellation Brands's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the beverages and alcohol stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. MGP Ingredients is down 5.2% during the same time and is heading into earnings with an average analyst price target of $114.1 (compared to the current share price of $78.44).

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