What trends in ALTO's earnings suggest for future quarters?

Alto Ingredients' recent performance and strategic initiatives suggest a mixed outlook for future quarters: 1. **Revenue Trends**: Alto Ingredients has seen a decline in revenue over the past year, with a 21% decrease from FY 2023 to FY 2024, totaling $965.3 million. This decline was partially offset by cost-saving measures and revenue from the Pekin Campus Production segment, which contributed 61% of the total revenue. 2. **Earnings Performance**: The company has reported net losses in the past, with a net loss of $60.3 million for FY 2024, an increase of 106% from the previous year. The net income cumulative growth rate for the past three years has been negative, with a -1.11% growth in FY 2024 and a -1.9% growth in FY 2022. |code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code| |---|---|---|---|---|---|---| |ALTO|ALTO.O|Alto Ingredients|2022|-190.26734950739984|-4.1597E7|186| |ALTO|ALTO.O|Alto Ingredients|2023|32.67543332451859|-2.8005E7|186| |ALTO|ALTO.O|Alto Ingredients|2024|-110.61953222638815|-5.8984E7|186| 3. **Strategic Initiatives**: Alto Ingredients has implemented cost-saving measures, including idle operations and reduced headcount, which are expected to save approximately $8 million annually starting in Q2 2025. The company has also acquired a beverage-grade liquid carbon dioxide processor, which is expected to be immediately accretive. 4. **Market Position**: Despite the challenges, the company's Pekin Campus Production segment has contributed significantly to revenue, and the acquisition of the liquid CO2 processor is expected to improve performance further. Additionally, the company's entry into the European market and improved performance at its Pekin wet mill could provide growth opportunities. In conclusion, while Alto Ingredients has faced significant challenges in recent years, the company's strategic initiatives and the stabilization of its revenue and cost structure suggest that future quarters could see improved financial performance. However, the negative earnings trend and the impact of non-core costs indicate that caution is still warranted.