The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut since March 2020 and the biggest in more than 16 years. The last time the Fed cut interest rates by half a percentage point was in 2008, with just an emergency exception during the pandemic. A 50-basis point rate cut will boost the broader economy, with growth stocks likely to gain the most. It would thus be prudent to invest in discretionary stocks. We have narrowed our search to four consumer discretionary stocks su ...

The much-awaited Federal Reserve's September policy meeting begins today, with expectations high among market participants that the central bank will finally start its rate-cut cycle. This will be the first time that the Fed will cut interest rates since March 2020. Investors are expecting at least a 25-basis point rate cut this month. Given this situation, investing in consumer discretionary stocks such as Crocs, Inc. (CROX) , Traeger, Inc. (COOK) , DoubleDown Interactive Co., Ltd. (DDI) , Royal Caribbean ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

Traeger (COOK) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since a changing earni ...

Financial Performance - Revenue reached $168 million in Q2 2024 [3], a slight decrease of 1.8% compared to $172 million in Q2 2023 [12] - Gross margin significantly improved to 42.9% in Q2 2024 [3], compared to 36.9% in Q2 2023 [15] - Adjusted EBITDA increased to $27 million in Q2 2024 [3], representing a 15.9% margin [3], up from $21 million and a 12.5% margin in Q2 2023 [15] - The company anticipates total revenue between $590 million and $605 million for fiscal year 2024 [15] - The company projects a gross margin between 40.5% and 41.5% for fiscal year 2024 [15] - Adjusted EBITDA is expected to be between $74 million and $79 million for fiscal year 2024 [15] Revenue Breakdown - Grills accounted for 56% of the revenue mix [4] - Consumables represented 24% of the revenue mix [4] - Accessories made up 20% of the revenue mix [4] Growth & Global Expansion - Rest of World revenues increased by 32% in Q2 2024 [8] - Influencer impressions increased nearly 80% over Q2 2023, reaching close to 500 million [6]

Traeger, Inc. (NYSE:COOK) Q2 2024 Earnings Call August 6, 2024 4:30 PM ET Company Participants Nick Bacchus - Vice President, Investor Relations Jeremy Andrus - Chief Executive Officer Dom Blosil - Chief Financial Officer Conference Call Participants Anna Glaessgen - B. Riley Megan Alexander - Morgan Stanley Phillip Blee - William Blair Brian McNamara - Canaccord Genuity Justin Kleber - Baird Peter Keith - Piper Sandler Operator Hello, everyone and welcome to the Traeger Second Quarter Fiscal 2024 Conferenc ...

Traeger (COOK) reported $168.47 million in revenue for the quarter ended June 2024, representing a year-overyear decline of 1.8%. EPS of $0.06 for the same period compares to $0.04 a year ago. The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $167.07 million. With the consensus EPS estimate being $0.06, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

分组1 - Traeger reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, and an increase from $0.04 per share a year ago [1] - The company posted revenues of $168.47 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 0.84%, but down from $171.51 million year-over-year [2] - Traeger has topped consensus revenue estimates four times over the last four quarters, while it has not surpassed consensus EPS estimates during the same period [2][1] 分组2 - Traeger shares have declined approximately 21.3% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $112.8 million, and for the current fiscal year, it is $0.03 on revenues of $591.46 million [7] 分组3 - The Consumer Products - Discretionary industry, to which Traeger belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenue for the three and six months ended June 30, 2024, was $168.5 million and $313.4 million, representing a decrease of 1.8% and 3.5% compared to the same periods in 2023[91]. - Revenue decreased by $3.0 million, or 1.8%, to $168.5 million for the three months ended June 30, 2024, compared to $171.5 million for the same period in 2023[110]. - Revenue decreased by $11.3 million, or 3.5%, to $313.4 million for the six months ended June 30, 2024, compared to $324.7 million for the same period in 2023[120]. - Revenue from grills increased by $1.8 million, or 2.0%, to $95.0 million for the three months ended June 30, 2024, driven by higher unit volume[111]. - Revenue from grills decreased by $11.1 million, or 6.1%, to $171.8 million, primarily due to a low-double digit reduction in average selling price[120]. - Revenue from consumables decreased by $1.1 million, or 3.1%, to $33.8 million for the three months ended June 30, 2024, impacted by lower average selling prices[112]. - Revenue from consumables increased by $1.1 million, or 1.8%, to $66.1 million, driven by over 20% increase in unit volume of food consumables[121]. - Revenue from accessories decreased by $3.8 million, or 8.8%, to $39.7 million for the three months ended June 30, 2024, primarily due to lower sales of MEATER smart thermometers[112]. Financial Losses - The company recorded a net loss of $2.6 million and $7.3 million for the three and six months ended June 30, 2024, compared to a net loss of $30.2 million and $41.1 million for the same periods in 2023[92]. - Net loss for the three months ended June 30, 2024, was $2.6 million, a decrease of $27.6 million or 91.5% compared to a net loss of $30.2 million in the same period last year[109]. Cost Management - The company has implemented cost savings initiatives to mitigate the effects of challenging macroeconomic conditions[96]. - General and administrative expenses decreased by $21.9 million, or 41.8%, to $30.5 million for the three months ended June 30, 2024, as a percentage of revenue decreased to 18.1% from 30.5%[116]. - General and administrative expense decreased by $16.4 million, or 20.8%, to $62.6 million, primarily due to lower stock-based compensation expense[125]. - Operating expenses decreased significantly, with total operating expenses at $67.5 million for the three months ended June 30, 2024, down from $90.9 million in the prior year[113]. Macroeconomic Impact - The company expects macroeconomic trends to continue impacting revenue and results of operations throughout fiscal year 2024[94]. - There was a mid-single digit percentage decline in demand for grills, measured by unit volume, for the six months ended June 30, 2024, compared to the prior year period[94]. - Inbound freight container rates increased by a mid-double digit percentage for the six months ended June 30, 2024, primarily due to global transportation factors[95]. Cash and Financing - As of June 30, 2024, cash and cash equivalents were $18.0 million, with $125.0 million borrowing capacity under the Revolving Credit Facility[130]. - The total principal amount outstanding under the First Lien Term Loan Facility was $403.7 million as of June 30, 2024[136]. - The company may seek additional equity or debt financing to support growth or acquisitions, which could be dilutive to existing stockholders[130]. - As of June 30, 2024, the company had drawn down $23.5 million under the Receivables Financing Agreement for general corporate and working capital purposes[143]. - The maximum borrowing capacity under the Receivables Financing Agreement was decreased from $100.0 million to $75.0 million, with seasonal adjustments allowed between $30.0 million and $75.0 million[141]. - The company is required to maintain a First Lien Net Leverage Ratio not to exceed 6.20 to 1.00, and it was in compliance with this covenant as of June 30, 2024[139]. - The fixed interest rate on outstanding cash advances under the Receivables Financing Agreement is approximately 2.6%[143]. - A new liquidity threshold of $42.5 million was implemented, with potential increases in required reserves if liquidity falls below this level[142]. - The expiration of the Receivables Financing Agreement was extended to August 6, 2027, as part of Amendment No. 10[143]. Research and Development - Research and development expenses were $4.8 million and $8.5 million for the three and six months ended June 30, 2024, compared to $3.0 million and $5.2 million for the same periods in 2023[103]. Other Financial Metrics - Gross profit increased by $9.0 million, or 14.2%, to $72.3 million for the three months ended June 30, 2024, with a gross margin of 42.9% compared to 36.9% in the prior year[113]. - Gross profit increased by $16.1 million, or 13.6%, to $134.9 million, with gross margin rising to 43.0% from 36.6%[122]. - Total other expense increased by $5.0 million, or 213.4%, to $7.4 million for the three months ended June 30, 2024, primarily due to decreases in realized and unrealized gains on interest rate swaps[118]. - Total other expense increased by $2.0 million, or 19.8%, to $11.8 million, mainly due to decreases in realized and unrealized gains on interest rate swaps[127]. Compliance and Obligations - The company remains compliant with the covenants under the Credit Facilities as of June 30, 2024[139]. - There have been no material changes to the company's contractual obligations as of June 30, 2024, compared to those disclosed in the Annual Report[144]. - There were no material changes to the company's critical accounting policies and estimates during the six months ended June 30, 2024[146]. - The company is the primary beneficiary of Traeger SPE LLC, consolidating it without significant judgments[140].

Revenue Performance - Total revenues decreased by 1.8% to $168.5 million compared to $171.5 million in the second quarter last year[3] - Grill revenues increased by 2.0% to $95.0 million, driven by higher unit volume from effective promotional activity[4] - North America revenue declined by 4.6%, while Rest of World revenues increased by 31.9% in the second quarter[5] - Revenue for Q2 2024 was $168,471,000, a decrease of 1% from $171,512,000 in Q2 2023[12] - Revenue for the three months ended June 30, 2024, was $168,471,000, slightly down from $171,512,000 in the same quarter of 2023[20] Profitability Metrics - Gross margin improved to 42.9%, up 600 basis points from 36.9% in the prior year, primarily due to favorable freight and logistics costs[5] - Gross profit increased to $72,328,000 in Q2 2024, up 14% from $63,331,000 in Q2 2023[12] - Adjusted EBITDA increased by 24.9% to $26.8 million compared to $21.5 million in the same period last year[6] - The adjusted EBITDA margin improved to 15.9% for the three months ended June 30, 2024, compared to 12.5% in the prior year[20] - Adjusted net income for the same period was $7,269,000, a significant improvement from an adjusted net loss of $4,464,000 in the prior year[20] - The company reported an adjusted net income (loss) margin of 4.3% for the current quarter, compared to (2.6)% in the same quarter of 2023[20] Net Loss and Financial Health - Net loss decreased by 91.5% to $2.6 million, or $0.02 per diluted share, compared to a net loss of $30.2 million, or $0.25 per diluted share, in the same quarter last year[6] - Net loss for Q2 2024 was $2,578,000, significantly improved from a net loss of $30,166,000 in Q2 2023[12] - The net loss margin was reported at (1.5)% for the current quarter, a significant improvement from (17.6)% in the same quarter last year[20] Guidance and Future Expectations - The company expects total revenue for FY 2024 to be between $590 million and $605 million[7] - Gross margin guidance for FY 2024 is expected to be between 40.5% and 41.5%[7] - Adjusted EBITDA guidance for FY 2024 is expected to be between $74 million and $79 million[7] Cash Flow and Liquidity - Cash and cash equivalents at the end of the second quarter totaled $18.0 million, down from $29.9 million at the end of 2023[7] - Cash provided by operating activities was $1,269,000 for the first six months of 2024, compared to $25,856,000 in the same period of 2023[13] - Total cash, cash equivalents, and restricted cash at the end of the period was $18,025,000, an increase from $14,496,000 at the end of June 2023[14] - Interest expense for the first six months of 2024 was $16,774,000, compared to $15,891,000 in the same period of 2023[12] - Cash paid for interest during the period was $19,783,000 for the first six months of 2024, compared to $20,487,000 in the same period of 2023[14] Stock-Based Compensation - The company incurred stock-based compensation expense of $17,163,000 in the first six months of 2024, down from $40,979,000 in the same period of 2023[13] - The company incurred stock-based compensation of $7,065,000 for the three months ended June 30, 2024, compared to $33,036,000 in the same period of 2023[20] Shareholder Metrics - The weighted average common shares outstanding on a diluted basis increased to 127,138,825 for the current quarter from 123,027,759 in the prior year[20] - The adjusted net income (loss) per diluted share was $0.06 for the three months ended June 30, 2024, compared to $(0.04) in the same period of 2023[20]