stock jumped Monday after the grill maker beat Wall Street expectations on a key metric for the fiscal third quarter.
(ticker: WEBR) posted a loss of 41 cents per share for its fiscal third quarter, wider than analyst’ expectations for a loss of 7 cents per share, according to FactSet. Revenue of $527.9 million for the quarter came in above estimates for $526.2 million. But adjusted earnings before interest, taxes, depreciation, and amortization of $11 million for the quarter was nearly triple the $4 million estimate.
Gross profit dropped 49% to $154 million from $299 million a year ago. Weber cited higher freight and commodity costs, promotional activity “in a macro environment that has slowed foot traffic,” and “significant currency devaluations.”
“Our third-quarter performance reflects the margin pressures we are experiencing as a result of global headwinds in our current operating environment,” interim CEO Alan Matula said in the company’s earnings release.
Weber plans layoffs in the company’s management, and the continued suspension of its quarterly cash dividend of 4 cents per share. The dividend was suspended in late July, with the announcement that CEO Chris Scherzinger was leaving the company.
Management believes that the cost-cutting actions will save at least $110 million in cash in fiscal 2023.
Shares of the grill maker were 10% higher Monday to $7.64, while the
S&P 500 index
is down 0.2%. Shares have slid 41% so far in 2022 compared with a 10% drop in the index.
Weber is not the first consumer company to lay off employees in an attempt to cut costs. Retail giant
(WMT) is eliminating about 200 jobs in a bid to restructure the company, and consumer-technology retailer
(BBY) has reportedly cut store jobs across the U.S.
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