REED - Reed's shares fizzle as margins profits are pulled in

Reed's (NASDAQ:REED) shares reeled in Monday’s extended session after posting a narrow earnings miss. The Norwalk, Connecticut ginger beverage company posted a miss on top and bottom lines, with commentary that suggests continued struggles against a bevy of headwinds. Of particular note, gross profit for the quarter came to $2.9 million, $1 million less than in 2021, while gross margin fell 760 basis points year over year. “We faced continued supply chain challenges at the start of the year that carried over from 2021,” CEO Norman Snyder said. “While demand for our products remained robust as demonstrated by 20% order volume growth for the quarter, we adopted a more measured approach to better manage cash burn and growth.” That control of cash burn was a key piece to Snyder’s commentary that largely sought to court confidence despite the disappointing quarterly print. He added that cost reductions in terms of warehouse,

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Reed’s shares fizzle as margins, profits are pulled in