May 16, 2022, 7:58 a.m. EDT

Weber shares slide 12% premarket after earnings fall short of estimates

Shares of grill maker Weber Inc. slid 12% premarket Monday, after the company posted a wider-than-expected loss for its fiscal second-quarter, sales fell short of estimates and it lowered guidance, hurt by supply-chain issues and rising costs. The Palatine, Illinois-based company posted a net loss of $54.5 million, or $1.02 a share, for the quarter to March 31, after income of $68.9 million in the year-earlier period. Sales fell to $607.3 million from $654.4 million a year ago. The FactSet consensus was for EPS of 18 cents and sales of $659 million. "Our second-quarter results reflect our proactive responses to supply chain and material cost inflation, which helped drive higher sequential gross margin and adjusted EBITDA margin versus the prior quarter," Chief Executive Chris Scherzinger said in a statement. The company revised its guidance for the full year to reflect the expected impact of reduced retail sellout related to traffic and consumer buying trends as well as the impact of currencies. It now expects sales to range from $1.65 billion to $1.80 billion, below the FactSet consensus of $2.1 billion. Shares have fallen 45% in the year to date, while the S&P 500 (S&P:SPX) has fallen 15.6%.

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