ATER - Aterian gains on guiding Q3 net revenue range above the consensus; resumes M&A strategy
- Aterian ( NASDAQ: ATER ) to resume its M&A strategy after its previously announced pause following the disruption of the global ecosystem due to the COVID-19 pandemic.
- The company intends to purchase the assets of a brand in the health and wellness category as it believes that the acquisition will be accretive; expanding and securing market share in an existing portfolio brand’s category.
- The specific terms of the acquisition will not be disclosed.
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The company also announced that the 3Q22 net revenue is expected to fall in the range of $62.0M to $66.0M vs consensus of $54.74M .
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The company expects to report a net loss 3Q22, due primarily to the company's operating loss including stock-based compensation expense, depreciation and amortization expense and the non-cash goodwill impairment charge.
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The company estimates that the non-cash goodwill impairment charge will be between $24.0M and $29.0M.
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For 2Q22, the company recorded a non-cash goodwill impairment charge of ~$29.0M due to the decrease in its market capitalization during the three months ended March 31, 2022.
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Shares are trading up 5.58% premarket.
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Aterian gains on guiding Q3 net revenue range above the consensus; resumes M&A strategy