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Tag: REED

  • The Beverage Provider Reed’s Crumbles Down Post Market on Quarterly Earnings

    The Beverage Provider Reed’s Crumbles Down Post Market on Quarterly Earnings

    Scorching heat or a mellow sun, a fizzy drink or a mild one; beverages are a norm in our everyday life. Growing day by day, the soft drinks industry has some giants ruling over the biggest shares. But still, there are other names persistent in keeping their own.

    Founded in 1987, the carbonated and non-carbonated beverages provider, Reed’s Inc. (REED) is focused on ginger and root beer drinks. The $35.83 million market cap company declared its complete 2021 financials on March 31, 2022. While having surpassed the preliminary expectations by the slightest margin, the earnings failed to interest investors in buying the stock. The mixed results sparked a sell-off in the stock making it decline by a hefty 13.48% in the after-hours. Thus, the stock plunged down to a near low value of $0.2600 per share. Prior to the earnings, REED subtracted 5.80% due to the investor frenzy over the expectations of the results. Hence, in the regular trading session, the stock had a value of $0.3005 per share.

    Q4 2021 Earnings

    Source: Invest19

    In the pre-announcement of earnings, the company had outlined supply-chain hurdles as a big challenge in 2021. Therefore, REED was expecting 19% YOY growth in revenue for Q4 2021 at $12.7 million. The company beat its own preliminary expectations by a slight margin of 1%, reporting 20% YOY growth at $12.8 million for the quarter. Amid the supply chain constraints, the company’s portfolio products were the reason for the boost in revenue.

    Moreover, the gross profit fell just in line with the preliminary report at $2.6 million against the prior-year quarter’s $3.5 million.

    On the other hand, the operating costs and modified EBITDA loss both exceeded the higher end of the expectations. The reported values were $4.4 million for operating loss and $3.9 million for EBITDA. Comparatively, the year-ago quarter’s operating and EBITDA losses were $2.7 million and $2.0 million respectively.

    What’s REED Doing?

    Some of the latest highlights from the company include a private placement and multiple product launches.

    On March 14, the company closed a private placement of its shares and warrants worth $5.4 million. Earlier, REED successfully launched its Classic Mule in Costco (Southeast locations) and Midtown Fresh (Michigan).

    How Does 2022 Look?

    REED has reaffirmed its 2022 guidance with net sales of $59-$60 million with an expected growth of 20-25% YOY. Furthermore, the company also remains firm on its gross margin expectations of roughly 30% for fiscal 2022.

  • Reed’s Inc. (REED) stock Bullish Before Upcoming Quarterly Earnings on March 31

    Reed’s Inc. (REED) stock Bullish Before Upcoming Quarterly Earnings on March 31

    On March 29, Reed’s Inc. (REED) stock was trending actively in the after-hours session while the company is set to declare Q4 2021 earnings on March 31, 2022. Previously, the company had reported preliminary unaudited Q4 and fiscal 2021 results on February 14.

    Source: Clearview Financial

    During the regular trading session, the stock barely remained in the green with a mild gain of 1.23%. This slight gain converted into a huge gain of 16.21% in the after-hours as a shift was seen in sentiment towards the stock. At an above the average volume of 3.13 million shares, REED closed the regular session at a price of $0.2726 per share. Following this, the stock shot up to a value of $0.3168 per share in the after-hours while 2.09 million shares were exchanged.

    The carbonated and non-carbonated beverages provider, Reed’s Inc. was founded in 1987. Currently, the company has a market capitalization of $30.25 million.

    What is Happening?

    Over the past few days, REED has had a period of relatively low activity with minimal gains and losses. With no latest news from the company, the stock surged up in the after-hours session on Tuesday to break free of its ongoing stagnancy. It seems the investors’ sentiment changed towards the stock based on external factors while the company is set to declare complete 2021 financials on March 31.

    A further contributing factor to the stock’s bullishness might have been the overall upward move in the stock market with Nasdaq Composite Index and Dow Jones Industrial Average both in the green. Moreover, it was not just REED but other beverage industry stocks like MNST (Monster Beverage), FIZZ (National Beverage) and PEP (PepsiCo) also witnessed gains on Tuesday.

    In the past five days, REED has declined by 4.69% while standing on a year-to-date loss of 24.00%. The stock subtracted a value of 75.44% last year.

    REED’s 2021 Financials

    According to the preliminary unaudited results, REED expects revenue of $12.7 million for Q4 and $49.6 million for fiscal 2021. This represents an increase of 19% YOY for both Q4 and fiscal 2021.

    Furthermore, the expected gross profit is $2.6 million and $13.6 million for Q4 and fiscal 2021 respectively.

    The company expects an operating loss of $3.9-$4.2 million for Q4 and $15.5-$15.8 million for fiscal 2021.

    In addition, for fiscal 2022 the company expects net sales of $59-$62 million with a gross margin of roughly 30%.

    The company will hold Q4 and fiscal 2021 conference call on March 31, 2022, at 5:00 pm ET.