Why Alto Ingredients Stock Crashed After Earnings

·2 min read
Why Alto Ingredients Stock Crashed After Earnings

Shares of Alto Ingredients (NASDAQ: ALTO) dropped 9.4% as of 11:45 a.m. EDT on Wednesday, after the company formerly known as Pacific Ethanol beat on sales but missed on profits in its second-quarter 2021 financial report, released Tuesday after market close. Unfortunately (although I suppose that depends on how you look at it), for all the concern over the delta variant of COVID-19 lately, Americans seem to be much less frantic to acquire disinfectant this year than last, and as a result, the profitability of Alto's products took a steep dive this time around. Gross profits were cut by more than half, and Alto's gross profit margin contracted by roughly two-thirds, to just 5.1%.

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