Why Weber Stock Popped Today
Shares of grill company Weber (NYSE: WEBR) popped on Monday after the company reported financial results for the fiscal third quarter of 2022. Results were pre-announced, so the market likely isn't celebrating these numbers. Rather, the market seems encouraged with the company's cost-saving initiatives, and that is likely why Weber stock was up 12% as of 11:45 a.m. ET today.
In the third quarter, Weber generated net sales of $528 million, which was down a whopping 21% year over year. But this wasn't a surprise; the company released preliminary third-quarter results on July 25. And third-quarter results were inside the pre-announced range.
Falling far faster than sales were Weber's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). In the third quarter, it had adjusted EBITDA of just $11 million compared to $134 million in the same quarter last year. Consumers have stopped buying grills, which has led to an oversupply of inventory. To move inventory, Weber management has offered discounts. And with costs rising because of inflation, lowering prices has decimated Weber's profitability.
Source Fool.com
