Weber Inc (NYSE: WEBR) is up 20% on Monday after the grills and related accessories maker reported better-than-expected sales for its fiscal third quarter.
Weber Q3 earnings snapshot
Swung to a $7.5 million loss or 41 cents per shareIn the same quarter last year, it had earned $17.8 million Sales tanked 21% year-over-year to $527.9 millionConsensus was 7 cents a share loss on $526 million salesEnded the quarter with $40.8 million in cash and equivalents
Sales were down 19% in Americas, 24% in EMEA, and 5.0% in APAC. Explaining why in the earnings press release, interim CEO Alan Matula said:
Our third quarter performance reflects the margin pressures we are experiencing as a result of global headwinds in our current operating environment.
Matula replaced Chris Scherzinger as the Chief Executive only last month.
Wall Street is dovish on Weber stock
Also on Monday, Weber announced cost cuts to position it well for 2023. The NYSE-listed firm said it will suspend its quarterly cash dividend and lower its headcount (non-manufacturing and distribution) by at least 10%, including some senior executives.
The Palatine-headquartered company is also committed to fixing inventory levels and lowering cost of goods sold to generate a cash benefit of over $100 million in FY23. Matula added:
To strengthen our financial position for fiscal year 2023 and beyond, we are introducing a comprehensive cash flow and cost management plan, which will position Weber to enhance its leadership position in a dynamic outdoor cooking market.
Wall Street, however, recommends that you “don’t buy” Weber stock, even though it’s still down close to 35% for the year.
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