COOK - Traeger stock tumbles on underdone guidance

Traeger’s ( NYSE: COOK ) tepid full-year forecasts burned the stock in after hours trading on Wednesday.

For the third quarter, a loss of $0.21 per share came in-line with expectations while a 42.1% decline in revenue from the prior year quarter to $93.8M narrowly exceeded very much tempered expectations. Meanwhile, a gross margin report of 27.7% came in 190 basis points below expectations.

"During the third quarter, our topline was pressured as macroeconomic uncertainty continued to weigh on the consumer and our retail partners aggressively reduced in-channel inventories,” CEO Jeremy Andrus explained. “We believe the macro environment will remain highly dynamic through the end of the year with our retail partners continuing to reduce inventory levels in the fourth quarter and we now expect full year results to be at the low-end or slightly below our prior guidance range.”

The company now anticipates full-year revenue to range from $635M to $640M, down from $640M to $660M and below the analyst consensus of $647.3M. A projection for adjusted EBITDA in the range of $33M to $35M was also reeled in from a previous $35M to $45M and also remains below $38.1M.

Shares of the Utah-based grill manufacturer fell by as much as 26% in Wednesday’s extended session before bouncing back to about a 2.96% decline as of 5PM ET.

Read more on the details of the results .

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