Weber Stock Sinks 20% on Big Earnings Miss and Guide Down

© Reuters.

Weber (NYSE:) shares are down roughly 12% in pre-market Monday after the company reported net sales for the second quarter that missed the average analyst estimate.

for the FQ2 came in at $607.3 million to miss the expected $660.3 million. Adjusted net loss was reported at $34 million, again much lower than the expected profit of $53.8 million.

WEBR said it expects full-year net sales of between $1.65 billion to $1.80 billion, compared to the prior guidance of $1.96 billion to $1.97 billion. Analysts were expecting $2.09 billion. Adjusted EBITDA is seen between $140 million to $180 million vs prior $275 million to $325 million

“Our second-quarter results reflect our proactive responses to supply chain and material cost inflation, which helped drive higher sequential gross margin and adjusted EBITDA margin versus the prior quarter,” said Chris Scherzinger, Chief Executive Officer of Weber.

Goldman Sachs analyst Kate McShane reiterated a Neutral rating after earnings.

“We anticipate the stock to trade down today due to the 2Q22 miss and lowered FY22 guidance. Key questions for the call include: 1) cadence of sales in the quarter; 2) QTD sales trends; 3) current status of the supply chain and outlook for inbound freight costs; and 4) color on inflation regarding its raw material costs,” McShane told clients shortly after WEBR earnings were released.

By Senad Karaahmetovic



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