BARK (NYSE:BARK) Announces Quarterly Earnings Results, Beats Estimates By $0.48 EPS

Key Points

• BARK beat earnings expectations: The company reported $0.08 EPS, $0.48 above consensus, while revenue of $78.81 million also exceeded estimates of $77.50 million.
• Profitability improved despite weaker sales: Adjusted EBITDA rose to $0.6 million from $0.1 million year over year, but revenue declined 23% as the direct-to-consumer subscriber base shrank. Management cited improving retention and average order value and expects sequential growth later in the fiscal year.
• Shares jumped 22.8%: BARK stock reached $11.25 after the results. Management maintained its full-year revenue and adjusted EBITDA guidance, while analysts’ average rating remained “Hold” with a $15.33 price target.

BARK (NYSE:BARK - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.08 earnings per share for the quarter, beating the consensus estimate of ($0.40) by $0.48, Zacks reports. BARK had a negative return on equity of 35.25% and a negative net margin of 8.42%.The business had revenue of $78.81 million during the quarter, compared to analyst estimates of $77.50 million.

Here are the key takeaways from BARK's conference call:

• Profitability improved: Adjusted EBITDA was $0.6 million, up from $0.1 million year over year, while normalized gross margin remained strong at 63.4%.
• Revenue fell 23% year over year to $78.8 million, primarily because BARK entered the year with a smaller direct-to-consumer subscriber base; D2C orders excluding BARK Air declined approximately 28%.
• Underlying D2C indicators strengthened, with subscriber retention up more than 170 basis points and average order value increasing $0.45; management expects sequential top-line growth and a D2C inflection later in the fiscal year.
• BARK Air revenue rose 37% year over year to $3.2 million, with more than 90% of second-quarter seats already sold, while commerce is expected to accelerate with holiday demand and the upcoming Girl Scout Cookie program.
• Management reiterated full-year revenue and adjusted EBITDA guidance and highlighted new growth initiatives, including the Lixters enrichment platform, expanded Crocs products, and a Liquid Death pet collaboration.

BARK Stock Up 22.8%

Shares of NYSE:BARK traded up $2.09 during midday trading on Friday, reaching $11.25. 217,898 shares of the company traded hands, compared to its average volume of 42,203. The firm's fifty day moving average price is $9.52 and its two-hundred day moving average price is $11.71. The firm has a market capitalization of $101.60 million, a price-to-earnings ratio of -3.14 and a beta of 1.95. BARK has a 12 month low of $8.15 and a 12 month high of $20.79.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Gabelli Funds LLC lifted its holdings in shares of BARK by 50.0% in the third quarter. Gabelli Funds LLC now owns 150,000 shares of the company's stock worth $125,000 after buying an additional 50,000 shares in the last quarter. State of Wyoming grew its stake in BARK by 40.2% during the second quarter. State of Wyoming now owns 177,988 shares of the company's stock valued at $157,000 after acquiring an additional 51,029 shares in the last quarter. Murchinson Ltd. grew its stake in BARK by 150.7% during the second quarter. Murchinson Ltd. now owns 410,043 shares of the company's stock valued at $361,000 after acquiring an additional 246,500 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in BARK by 15.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,692,503 shares of the company's stock worth $1,489,000 after acquiring an additional 230,131 shares during the period. Finally, NewEdge Advisors LLC bought a new stake in BARK during the 1st quarter worth approximately $65,000. Hedge funds and other institutional investors own 28.76% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Jefferies Financial Group reaffirmed a "buy" rating and set a $19.00 price target on shares of BARK in a research report on Thursday, June 11th. Wall Street Zen raised BARK from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings restated a "sell (e+)" rating on shares of BARK in a research note on Monday. Finally, Lake Street Capital set a $12.00 price objective on shares of BARK and gave the company a "buy" rating in a report on Wednesday, June 10th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $15.33.

BARK Company Profile

BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct‐to‐consumer offerings designed to meet the everyday needs of dogs and their owners. The company's core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base.

In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis.

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