BRC (NYSE:BRCC) Releases Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• BRC reported a quarterly EPS of ($0.07), missing estimates by $0.04. The company also had a negative net margin of 1.67% and a return on equity of –2.09%.
• In insider trading news, Director Evan Hafer and Director Stephen M. Kadenacy each purchased 80,000 shares at an average price of $1.25 per share, totaling $100,000 each, indicating strong insider confidence.
• Wall Street analysts remain optimistic, with Telsey Advisory Group maintaining an "outperform" rating and setting a price target of $4.00 for BRC shares.

BRC (NYSE:BRCC - Get Free Report) posted its quarterly earnings results on Monday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.04), Zacks reports. BRC had a negative return on equity of 12.88% and a negative net margin of 2.89%. The company had revenue of $94.84 million for the quarter, compared to the consensus estimate of $91.78 million. BRC updated its FY 2025 guidance to EPS.

BRC Stock Down 7.4%

Shares of NYSE BRCC traded down $0.12 on Friday, reaching $1.44. 431,292 shares of the company's stock traded hands, compared to its average volume of 795,378. The company has a quick ratio of 0.61, a current ratio of 1.29 and a debt-to-equity ratio of 1.97. The business's 50 day simple moving average is $1.60 and its two-hundred day simple moving average is $2.02. BRC has a 12 month low of $1.19 and a 12 month high of $4.65. The company has a market cap of $204.60 million, a price-to-earnings ratio of -9.57 and a beta of 0.93.

Wall Street Analysts Forecast Growth

BRCC has been the subject of several analyst reports. Roth Capital set a $2.00 price target on shares of BRC and gave the company a "neutral" rating in a research report on Wednesday, May 7th. Telsey Advisory Group restated an "outperform" rating and issued a $4.00 price objective on shares of BRC in a report on Tuesday.

Insider Buying and Selling

In related news, Director Stephen M. Kadenacy purchased 80,000 shares of the stock in a transaction dated Friday, July 18th. The stock was purchased at an average price of $1.25 per share, with a total value of $100,000.00. Following the transaction, the director directly owned 1,068,482 shares in the company, valued at $1,335,602.50. This trade represents a 8.09% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Evan Hafer purchased 80,000 shares of the company's stock in a transaction that occurred on Friday, July 18th. The stock was purchased at an average price of $1.25 per share, for a total transaction of $100,000.00. Following the purchase, the director owned 80,000 shares in the company, valued at $100,000. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 576,000 shares of company stock worth $720,000 in the last 90 days. Insiders own 69.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC lifted its holdings in shares of BRC by 342.1% during the 1st quarter. AQR Capital Management LLC now owns 56,861 shares of the company's stock valued at $119,000 after buying an additional 43,998 shares during the period. Millennium Management LLC lifted its holdings in BRC by 4.1% in the first quarter. Millennium Management LLC now owns 1,871,110 shares of the company's stock valued at $3,911,000 after acquiring an additional 72,962 shares during the period. Geode Capital Management LLC boosted its position in BRC by 10.0% in the second quarter. Geode Capital Management LLC now owns 1,270,764 shares of the company's stock worth $1,665,000 after purchasing an additional 115,289 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of BRC by 204.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 651,251 shares of the company's stock valued at $1,361,000 after purchasing an additional 437,359 shares during the period. Institutional investors own 16.29% of the company's stock.

About BRC

BRC Inc, through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel in the United States. The company also produces media content, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders.