Why Oatly Stock Turned Sour in March
Shares of Oatly Group (NASDAQ: OTLY) plunged 25.8% lower in March 2022, according to data from S&P Global Market Intelligence. The Swedish maker of oat milk and related products posted mixed results in last month's fourth-quarter report. Analysts and investors were quick to focus on the weaker bits of that report, continuing a downbeat trend that started a couple of weeks after Oatly's IPO.
Oatly's fourth-quarter sales rose 46% year over year, landing at $186 million. On the bottom line, net losses expanded from $0.08 to $0.13 per diluted share. Your average analyst had been expecting a net loss of roughly $0.09 per share on top-line revenue near $174 million.
Management pointed to inflation-based cost increases and supply chain difficulties undermining the company's successful global expansion program. Looking ahead, Oatly's full-year revenue guidance for 2022 aimed approximately 10% below the analyst consensus at the time. Capital expenses are also expected to double this year as Oatly is building new production facilities in Texas, the U.K., and China.
Source Fool.com
