Traeger (NYSE:COOK) shares surged more than 23% in pre-market Thursday after the company reported Q2 results.
EPS of $0.04 came in better than the consensus estimate of ($0.02). Revenue fell 14.4% year-over-year to $171.5 million, beating the consensus estimate of $154.89M.
Grills revenue decreased 20.9% year-over-year to $93.1M, and consumables decreased 17.1% to $34.9M. Accessories were down 7.4% year-over-year to $43.5M.
The company raised its revenue and adjusted EBITDA guidance for the full 2023 year. Revenue is expected in the range of $585-$600M, above the consensus of $575.51M. Adjusted EBITDA is seen at $55-$59M.
Telsey Advisory Group analysts upgraded the stock to Outperform, citing 4 reasons:
- "We seem to be at an inflection point where the business has bottomed or is close to doing so;
- The previous headwind of retailers destocking grill inventories appears to be complete;
- The successful removal of significant cost ($20MM annual run rate) from the business following downsizing and enhancements to operational efficiency; and
- A reversal in freight rates now generating cost savings as the supply chain environment has improved."
Telsey's new price target on COOK stock is $6.50 per share.
Additional reporting by Senad Karaahmetovic