REED - Reed's jumps 7% postmarket on Q4 prelim results
Reed’s (NASDAQ:REED) jumped 7% during postmarket trade after it reported prelim. Q4 and FY21 results. Q4 net revenue is expected to increase ~19% Y/Y to $12.7M vs. consensus estimate of $13.19M. Gross profit in Q4 is estimated to be ~$2.6M, with gross margin at ~20.6%. Modified EBITDA is expected to be -$3.4M-3.7M, compared to -$2.6M in the year-ago period. REED forecast FY21 net revenue to grow ~19% Y/Y to $49.6M vs. consensus estimate of $50.01M. FY21 gross profit is estimated to grow ~7% to $13.6M, with gross margin at ~27.5%. Modified EBITDA is expected to be -$13M-13.3M, compared to -$6.8M in the year-ago period. “We experienced a recovery in gross margin through the first half of Q1 and expect further improvements heading into Q2 as we transition to a new label supplier and co-packer. In addition, we are implementing price increases across our portfolio of products," said CEO Norman Snyder.
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Reed’s jumps 7% postmarket on Q4 prelim results