Why NewAge Stock Tanked Today
Shares of NewAge (NASDAQ: NBEV) have tanked today, down by 10% as of 12 p.m. EST, after the company announced preliminary fourth-quarter earnings. NewAge also said that it's conducting a private placement to raise fresh capital.
Revenue in the fourth quarter is expected to be approximately $90 million, which is well above the consensus estimate of $79.3 million. The consumer discretionary company, which makes a variety of beverages, expects gross margin to be in the range of 64% to 68%, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly breakeven. NewAge closed its merger with ARIIX during the quarter and has started to integrate the two companies.
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Source Fool.com
