Please ensure Javascript is enabled for purposes of website accessibility

Why Traeger Stock Got Smoked Today

By Eric Volkman – Sep 10, 2021 at 4:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors didn't seem to be impressed by the grill maker's latest fundamentals.

What happened

Pellet grill maker Traeger (COOK -3.36%) is going into the weekend on a bum note. The barbecue stock fell by nearly 6% after the company published its latest set of quarterly results.

So what

In Traeger's second quarter, the company earned $213 million in revenue, which was 39% higher than in the same period of 2020.

However, it flipped to a GAAP net loss of $4.9 million, or $0.05 per one of Traeger's common units, quite some distance below the $9.3 million profit of Q2 2020. On a non-GAAP (adjusted) basis the company's bottom line was in the black, but at $16.5 million ($0.15 per unit) this was well under the $27.8 million in the year-ago period.

A group of adults and kids seated at a table and partaking of barbecue food.

Image source: Getty Images.

On average, analysts following the stock were anticipating $211 million on the top line, with per-share net profit coming in at $0.04.

Understandably, Traeger touted its robust revenue growth in its earnings release. It wrote that "Performance was driven by the productivity of our omnichannel sales strategy, the strength of our retail partnerships, and investment in top-of-funnel demand creation as we continue to drive brand awareness." 

The company added that sales in Canada, a famously barbecue-loving nation, were particularly strong.

Now what

Traeger also provided selected guidance for the entirety of 2021. The company believes it will post revenue of $760 million to $770 million, which if achieved would mean year-over-year growth of at least 39% -- matching the Q2 figure. Adjusted EBITDA should land at $103 million to $108 million; no bottom-line forecast was provided.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Traeger, Inc. Stock Quote
Traeger, Inc.
COOK
$3.45 (-3.36%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.