Shares of MGP Ingredients (NASDAQ: MGPI) plummeted by 5.02% on Thursday, following the release of the company's third-quarter 2024 earnings report. While the company's net income and earnings per share (EPS) showed improvement, a significant decline in revenue raised concerns among investors.

MGP Ingredients reported a 24% year-over-year drop in revenue for the third quarter, falling to $161.5 million. Despite the revenue decline, the company managed to increase its net income by 85% to $24.2 million, driven by lower expenses. EPS also improved, reaching $1.10, but narrowly missed analysts' expectations.

Analysts had expected MGP Ingredients to face challenges in the beverage industry, as revenue growth is projected to decline by 3% annually over the next three years. However, the company's revenue decline in the third quarter appears to have exceeded market expectations, weighing heavily on investor sentiment and contributing to the sharp sell-off in the stock.