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It lacks revenue estimates and reports a net loss

  • Income: It reached $144.9 million, down 5.4% year-over-year but slightly above the estimate of $143.91 million.

  • Net loss: The reported figure was $4.7 million compared to a net loss of $10.9 million in the prior year, an improvement but still compared to an estimated net loss of $4.17 million.

  • Gross margin: It increased significantly to 43.2%, compared to 36.2% last year, indicating increased operational efficiency.

  • Adjusted EBITDA: An increase of 11.2% to $24.4 million, reflecting improved profitability and operational management.

  • Adjusted net income: It came in at $4.7 million, or $0.04 per share, topping the year-ago level of $1.2 million, or $0.01 per share, which is in line with current EPS estimates.

  • Market performance: Revenues in North America declined 9.1%, while revenues in the rest of the world saw a significant increase of 31.1%.

  • Future perspectives: The company maintains its full-year forecasts, expecting demand to continue to weaken but gross margin to improve.

Traeger Inc (COOK) Fiscal 2024 First Quarter Earnings: No Revenue Estimates and Reports Net LossTraeger Inc (COOK) Fiscal 2024 First Quarter Earnings: No Revenue Estimates and Reports Net Loss

Traeger Inc (COOK) Fiscal 2024 First Quarter Earnings: No Revenue Estimates and Reports Net Loss

On May 8, 2024, Traeger Inc (NYSE:COOK), a leading innovator in the wood pellet grill industry, released its financial results for the first quarter ended March 31, 2024 via an 8-K filing. The company saw total revenue decline 5.4% to $144.9 million, slightly above the high end of its forecast but below analysts’ expectations of $143.91 million. The net loss was $4.7 million, which translates to $0.04 per share, which contrasts sharply with the estimated earnings per share of $0.03.

Informations about company

Traeger Inc designs, sources and sells innovative wood pellet grills. In addition to grills, the company offers a wide range of related supplies and accessories, including wood pellets, cloths, seasonings and smart thermometers. Traeger’s primary market is North America, which contributes significantly to its revenues, although it also operates globally.

Information about financial results

Financial performance was mixed in the reported quarter, with significant improvement in gross margin, which increased to 43.2% from 36.2% in the prior year, driven by better transportation and logistics management and favorable foreign exchange rates. Adjusted EBITDA increased 11.2% to $24.4 million, reflecting operational efficiency.

However, the revenue decline was primarily due to a 14.4% decline in grill sales, driven by lower average selling prices and reduced unit volumes, indicating lower consumer demand for grills. On the other hand, the consumables and accessories segments grew by 7.4% each, supported by higher unit sales of food products and MEATER smart thermometers.

Balance sheet and cash flow

Traeger Inc’s balance sheet showed cash and cash equivalents of $23.6 million, down from $29.9 million at the end of December 2023. Inventory levels increased slightly to $99.9 million from $96.2 million this year. same period. The company used $12.6 million in operating expenses, primarily due to net loss and changes in working capital.

Comment of the Management Board

“During the first quarter, we executed on our plan and achieved revenue and adjusted EBITDA at the high end of our guidance,” said Jeremy Andrus, CEO of Traeger. He also noted ongoing consumer demand challenges but expressed confidence in the company’s strategic initiatives and long-term growth prospects.

Outlook and guidance for the future

Traeger maintained its full-year 2024 guidance, expecting total revenue to be between $580 million and $605 million and forecasting gross margin of 39% to 40%. Adjusted EBITDA is expected to be between $62 million and $71 million. This outlook reflects the company’s strategy to address ongoing demand fluctuations in the grill market and its focus on margin expansion initiatives.

Application

While Traeger Inc faced a difficult quarter characterized by a revenue shortfall and a net loss, its improved gross margin and adjusted EBITDA results highlight operational strengths. The company remains optimistic about its strategic direction and ability to achieve long-term growth despite the current market headwinds.

For detailed financial information and future updates, investors and interested parties are encouraged to review the full performance report and supporting materials available on the company’s investor relations website.

For more information, check out the full 8k Gains publication. (here) by Traeger Inc.

This article first appeared on GuruFocus.