What happened
Shares of premium coffee seller BRC (BRCC +4.00%) are rising 8.1% at 11:09 a.m. ET Thursday after the company, which owns the Black Rifle Coffee brand, reported second-quarter earnings that missed Wall Street's top- and bottom-line estimates.
BRC said sales jumped 27% to $66 million compared to expectations of $70.9 million, and while losses of $0.22 per share were far worse than the $0.04 loss that analysts forecast, it was dramatically better than the $1.49 loss recorded a year ago.
NYSE: BRCC
Key Data Points
So what
BRC went public in February through a reverse merger with a special purpose acquisition company, or SPAC, and began trading at $12 a share. It quickly built up momentum and shot as high as $34 before beginning a long, steady slide throughout the summer. Today the stock costs a little over $9, a 73% dump in value.
Black Rifle Coffee is best known as a veteran-owned company that strongly supports veterans, law enforcement, and first responders. It has generated controversy on both sides of the political aisle by being a gun-themed business, and because it has distanced itself from several popular conservative personalities.
BRC, though, maintains it's just focused on making good coffee while supporting veterans and others.
Now what
Business has been growing for BRC. Revenue is up 31% year to date and, as noted, losses have significantly narrowed from last year.
But due to the current inflationary environment, BRC no longer expects to be in the black on an adjusted EBITDA basis for the back half of 2022. Yet the coffee stock did raise its full-year revenue guidance to $320 million from $315 million.
