Brilliant Earth Group ( NASDAQ: BRLT ) shares slid over 20% on Friday as gloomy guidance overshadowed a Q3 earnings beat.
For the third quarter, the company notched $0.07 in earnings per share and $111.4M in revenue. Those figures came in $0.02 and $190K above analyst estimates, respectively. Additionally, gross margin expanded by 430 basis points from the prior year quarter, reaching a company record 54.7%.
However, CEO Beth Gerstein warned of tougher sledding into the fourth quarter.
“As we look to finish the year, the macro headwinds are more difficult than earlier in the year causing us to be more cautious about our fourth quarter revenue outlook,” she explained. “While our topline expectations have changed, we continue to expect adjusted EBITDA within our previously established outlook range.”
The company now expects Q4 net sales to be in the range of $116M to $126M, well below the $146.88M consensus expectation. Full-year sales outlook was also reeled in to a range of $436M to $446M from a prior $450M to $470M expectation. Full-year adjusted EBITDA is forecast for a range between $32M and $37M, narrowed from a range of $30M to $40M reflected in prior forecasts.
Shares fell over 30% at intraday lows and remained about 25% depressed in the early hours of Friday’s trading day.
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Brilliant Earth stock slumps after sales forecast falls short of expectations