Traeger Shares Plummet 10% on Q2 Miss & Reduced Guidance
2022.08.11 00:37
Traeger Shares Plummet 10% on Q2 Miss & Reduced Guidance
By Davit Kirakosyan
Traeger Inc (NYSE:COOK) shares plunged nearly 10% after-hours following the company’s reported Q2 results, with EPS of $0.04 coming in worse than the consensus estimate of $0.05. Revenue decreased 6% year-over-year to $200.3 million, missing the consensus estimate of $221.07 million.
North America revenue declined 8% year-over-year, and Rest of World revenue increased 38.4% year-over-year, reflecting the acquisition of Apption Labs and growth in the company’s international markets.
According to Jeremy Andrus, CEO of Traeger, macroeconomic conditions that are pressuring the consumer and changes in spending behavior negatively impacted the company’s Q2 results. “With softer demand trends, we accelerated efforts to mitigate these pressures. We are taking proactive and immediate steps to drive profitability and financial flexibility, including a cost reduction plan which we expect to drive $20 million in annualized savings. We are anticipating a challenging second half of 2022 as macroeconomic pressures continue to weigh on consumer demand and as our retail partners reduce channel inventories,” said Andrus.
The company lowered its full 2022-year guidance, expecting total revenue to be in the range of $640-$660 million, and adjusted EBITDA in the range of $35-$45 million.
