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Traeger (NYSE: COOK) reported Q4 2021 and full year 2021 earnings after the market closed today. The eight analysts covering them had a wide range for projected Q4 EPS from -$0.16 to $0.03 and an average -$0.05. Traeger turned in a good Q4 with an adjusted EPS at the top end of analyst estimates, at $0.03. Unfortunately, the good news didn’t overcome the bad, as they issued low guidance for 2022, resulting in their stock being down significantly in after hours trading.
Traeger gave 2022 guidance of $800 million to $850 million in revenue and adjusted EBITDA between $70 million and $80 million, with the pessimistic note:
Full year guidance reflects a moderation in year over year sales growth driven by comparing against two years of accelerated retail activity and the impact of inflationary pressures and geopolitical turmoil on consumer sentiment and discretionary spending, as well as gross margin pressures due to global supply chain challenges.
Traeger Q4 2021 Earnings Release
The pessimism didn’t stop there, as it sounds like Q1 is going pretty rough. They guided towards a decline in year over sales growth and noted tough comps. The full statement reads:
First quarter guidance reflects a decline in year over year sales growth driven by comparing against accelerated retail activity in the first quarter of 2021 and the impact of inflationary pressures and geopolitical turmoil on consumer sentiment and discretionary spending, as well as gross margin pressures due to global supply chain challenges.
Traeger Q4 2021 Earnings Release
They join grill make Weber with noted issues for 2022, rather than joining popular Blackstone griddle maker Blackstone Products in affirming guidance. With the release of the new, premium Traeger Timberline grill, we’ll see if that can help their outlook for 2022.