Weber Inc. ($WEBR) Earnings (Q2 FY22)

 Weber Inc. ($WEBR) Earnings and Opinion:


Weber is a company in the Consumer Cyclical sector and operates in the Furnishings, Fixtures, and Appliances industry. The company is an outdoor cooking company that operates internationally. Weber was founded in 1952 and is headquartered in Palatine, Illinois. The company made its debut on the stock market in the summer of 2021.

Weber EPS and Revenue (Q2 FY22):

  • EPS of -$0.18 missing expectations of $0.12
  • Revenue of $607.29M missing expectations of $659.06M
Weber Q2 Highlights:
  • Net sales decreased by 7% Y/Y
  • Gross Profit decreased by 27% Y/Y
  • Net loss of $51M, compared to a net income Y/Y
  • Adjusted EBITDA of $86M, down from $149M Y/Y
Opinion:
Weber stock is currently moving slightly down after reporting earnings this morning before the bell. The company seemed to have a tough quarter of sales with revenue and EPS expectations being missed. Supply chain issues seemed to factor into play with the missing of expectations and the lackluster report that came out. Weber does manufacture their products within the United States, which causes less stress over supply chain issues, but it is still a key component when it comes to getting parts to manufacture their products. The company saw less volume in sales, which is something to consider. However, with summer coming up and a lot more hanging out outdoors happening, maybe this next quarter sales volume will increase. Weber cut it guidance for operating margin as well, which is a shun to investors as they now expect less in that respected category. The company still has a dividend in place, but it is a very slim one as they don't have a lot of income to distribute these. In terms of stock performance, they are down around 57% in the past 6 months. The stock closely follows the performance of competitor Traeger ($COOK) as these two pretty much operate the same. It has a really low P/S ratio at a solid 0.19, which is low and doesn't have any P/E ratios because of the net loss this quarter. With the market cap and value of this company seemingly dwindling. I wouldn't be surprised to see this company get picked up and acquired by some bigger company out there. Weber is a lead producer in grills and has been around for a while. They have their products in some big stores and do relatively well in sales. I just hope they can up their performance and really drive in some better sales, or if they happen to get acquired. The company taking over really improves the business and makes it beneficial for their own good. For now, I would pass on this stock. They need to prove a lot more and get sales volume back up. I want to see some better operating margins and maybe some better sales in Americas, as that lacked this quarter. 

*Information from Weber, Google, Yahoo Finance, CMLVIZ

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