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Weber Posts Poor Q1 Results; Misses Estimates

Weber Inc. (NYSE: WEBR) has reported lower-than-expected results for the first quarter of Fiscal Year 2022 (ended December 2021). The outdoor cooking company maintains a diverse product portfolio across fuel types, pricing tiers, and a wide range of accessories, consumables and services.

The company reported a loss of $0.19 per share, above the consensus estimate of a loss of $0.06. Also, fourth-quarter revenues of $283 million missed the analyst’s expectations of $310.8 million.

Performance in the fourth quarter was affected by supply chain and inflation pressures, along with unfavorable foreign exchange rate movement. Adjusted EBITDA came in at a negative $36 million, compared to $38 million in the prior-year quarter.

Weber’s CEO Chris Scherzinger said, “Importantly, we continue to gain momentum against our five key strategies for long-term profitable growth… I am also confident that our growing direct-to-consumer and e-commerce engine, our emerging markets investments, and our unique US and European manufacturing footprint give us substantial means to drive profitable growth and navigate through the current inflationary environment.”

Outlook

For the Fiscal Year 2022, the company projects net sales growth to be in the range of 6% to 8% on a year-over-year basis. Also, Adjusted EBITDA is expected to be between $275 million and $325 million based on unprecedented cost challenges.

Stock Rating

The Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The Weber stock price prediction of $15.75 implies 48.6% upside potential to current levels.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Weber, as 8% of investors on TipRanks increased their exposure to WEBR stock over the past 30 days.

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