AMCON Q1 EPS Soars Y/Y on Strong Wholesale Distribution

Shares of AMCON Distributing Company DIT have gained 0.4% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares favorably to the S&P 500 index, which declined 0.9% over the same period. Over the past month, AMCON shares have appreciated 2.3%, while the broader market index has slipped 0.6%.

For the first quarter of fiscal 2026, AMCON reported earnings per share (EPS) of $1.28, which marks a substantial increase from 57 cents EPS in the same quarter of the prior year. 

Revenues for the quarter came in at $730.1 million, up 2.6% from $711.3 million in the year-ago period. Gross profit increased to $48 million from $46.9 million, representing a 2.5% improvement. Operating income rose to $3.9 million compared to $3.7 million a year earlier, a gain of 7.4%.

AMCON’s net income of $0.8 million represented a substantial increase from the $0.3 million in the same quarter of the prior year, a 127.6% year-over-year rise.

AMCON Distributing Company Price, Consensus and EPS Surprise

AMCON Distributing Company price-consensus-eps-surprise-chart | AMCON Distributing Company Quote

Segment Performance Reflects Mixed Trends

The company’s operations are divided into wholesale distribution and retail health food segments. The wholesale distribution business — AMCON’s primary revenue driver — generated $719.3 million in sales and $6.9 million in operating income for the quarter. In contrast, the retail health food segment posted $10.8 million in revenues but incurred a $0.2 million operating loss, indicating ongoing challenges in that business line.

Operating expenses, including selling, general, and administrative costs along with depreciation and amortization, totaled $44.1 million, up modestly from $43.2 million in the prior-year quarter.

Management Commentary Highlights Strategic Focus

Chairman and CEO Christopher H. Atayan emphasized the company’s continued investment in its proprietary foodservice and merchandising programs, which aim to provide a competitive advantage to AMCON’s retail partners. 

President and COO Andrew C. Plummer echoed this customer-centric theme, highlighting the company’s advertising and marketing support services. According to Plummer, AMCON’s integrated marketing tools — spanning print and electronic displays — offer customers a “competitive edge,” especially under challenging conditions such as adverse weather.

CFO Charles J. Schmaderer addressed the ongoing impacts of inflation, noting cost pressures in areas like labor, product sourcing, insurance, and equipment. Despite these challenges, the company reported shareholders’ equity of $114.1 million as of Dec. 31, 2025, up from $113.1 million at the end of September.

Factors Driving Performance

The earnings boost was supported by several operational and financial factors. Inventory levels decreased significantly from $153.3 million at the end of September to $144.4 million in December, freeing up cash and possibly reflecting improved supply chain management. Additionally, accounts payable were reduced by over $21 million quarter-over-quarter, indicating potential improvements in working capital management.

However, inflation continues to weigh on operating costs, and total interest expense remained high at $2.7 million, only marginally lower than the $2.9 million recorded in the year-ago quarter. These pressures partially offset the gains from higher revenues and operational efficiencies.

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This article originally published on Zacks Investment Research (zacks.com).

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