Core Insights - Traeger reported revenue of $122.05 million for Q3 2024, a 3.7% increase year-over-year, and an EPS of -$0.06, improving from -$0.12 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $118.44 million by 3.05%, while the EPS matched the consensus estimate [1] Revenue Breakdown - Net sales from Grills reached $74.90 million, significantly surpassing the estimated $60.41 million, reflecting a year-over-year increase of 32.3% [3] - Net sales from Consumables were reported at $22.50 million, below the estimated $25.66 million, marking an 11.4% decline year-over-year [3] - Net sales from Accessories totaled $24.60 million, falling short of the $32.70 million estimate, representing a 31.3% decrease compared to the previous year [3] Stock Performance - Traeger shares have declined by 1.5% over the past month, contrasting with a 0.7% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $122.1 million, a 3.7% increase from $117.7 million in the same period of 2023[107]. - Revenue for the nine months ended September 30, 2024, was $435.4 million, a decrease of 1.6% from $442.4 million in the same period of 2023[108]. - Revenue increased by $4.3 million, or 3.7%, to $122.1 million for the three months ended September 30, 2024, compared to $117.7 million for the same period in 2023[126]. - Total revenue decreased by $7.0 million, or 1.6%, to $435.4 million for the nine months ended September 30, 2024, compared to $442.4 million for the same period in 2023[138]. Profitability and Margins - The company recorded a net loss of $19.8 million for the three months ended September 30, 2024, compared to a net loss of $19.3 million in the same period of 2023[108]. - Gross margin increased to 42.8% for the nine months ended September 30, 2024, up from 36.9% in the same period of 2023[111]. - Gross profit increased by $23.2 million, or 14.2%, to $186.6 million, with gross margin rising to 42.8% from 36.9%[142]. - Gross profit increased by $7.0 million, or 15.7%, to $51.7 million, with gross margin rising to 42.3% from 37.9%[130]. Expenses - Research and development expenses were $3.3 million for the three months ended September 30, 2024, compared to $2.8 million in the same period of 2023[118]. - Research and development expenses for the nine months ended September 30, 2024, were $11.8 million, up from $8.0 million in the same period of 2023[118]. - Total operating expenses increased by $1.6 million, or 2.7%, to $59.1 million for the three months ended September 30, 2024[130]. - General and administrative expenses decreased by $0.7 million, or 2.8%, to $24.1 million, as a percentage of revenue decreased to 19.8%[133]. - General and administrative expenses decreased by $17.1 million, or 16.5%, to $86.8 million, as a percentage of revenue decreased to 19.9%[145]. Revenue Breakdown - Revenue from grills increased by $7.3 million to $246.7 million for the nine months ended September 30, 2024, compared to the prior year period[110]. - Revenue from grills increased by $18.4 million, or 32.5%, to $74.9 million, driven by unit volume growth in excess of 80%[127]. - Revenue from consumables decreased by $2.9 million, or 11.2%, to $22.5 million, primarily due to seasonal ordering shifts[128]. - Revenue from accessories decreased by $11.2 million, or 31.3%, to $24.6 million, driven by lower sales of MEATER smart thermometers[129]. - Revenue from consumables decreased by $1.7 million, or 1.9%, to $88.6 million, primarily due to a low-single digit reduction in wood pellet unit volume[140]. - Revenue from accessories decreased by $12.5 million, or 11.1%, to $100.1 million, mainly due to lower sales of MEATER smart thermometers[141]. Financial Position and Liquidity - As of September 30, 2024, cash and cash equivalents were $16.9 million, with a borrowing capacity of $125.0 million under the Revolving Credit Facility[150]. - Net cash provided by operating activities was $16.4 million, a decrease from $44.4 million in the prior year[151]. - The First Lien Term Loan Facility totals $560.0 million, including a $50.0 million delayed draw term loan[156]. - As of September 30, 2024, the total principal amount outstanding on the First Lien Term Loan Facility was $403.6 million[157]. - The fixed interest rate on the Revolving Credit Facility ranges from 2.75% to 3.25% per annum, with no outstanding loan amounts as of September 30, 2024[158]. - The maximum borrowing capacity under the Receivables Financing Agreement was decreased from $100.0 million to $75.0 million as of November 8, 2023[162]. - As of September 30, 2024, the company had drawn down $12.0 million under the Receivables Financing Agreement for general corporate and working capital purposes[165]. - The company is required to maintain a First Lien Net Leverage Ratio not to exceed 6.20 to 1.00, and was in compliance with this covenant as of September 30, 2024[160]. - The Revolving Credit Facility expires on June 29, 2026, with no principal payments due before that date[158]. - The fixed interest rate on outstanding cash advances under the Receivables Financing Agreement is approximately 2.6%[164]. - The company entered into Amendment No. 10 to the Receivables Financing Agreement to extend the expiration of the facility to August 6, 2027[164]. - The company is subject to a new liquidity threshold of $42.5 million under the Receivables Financing Agreement[163]. - There have been no material changes to the company's contractual obligations as of September 30, 2024[166]. Strategic Initiatives - The company has seen unit volume growth in excess of 80%, despite a high-double digit reduction in average selling price due to strategic pricing actions[110]. - The company continues to monitor macroeconomic conditions and has implemented cost savings initiatives to maintain product quality and reliability[111]. - The company expects general and administrative expenses to normalize as it manages investments to support growth and product development[119]. Other Expenses - Interest expense increased by $1.0 million, or 13.5%, to $8.5 million for the three months ended September 30, 2024[135]. - Total other expense increased by $7.0 million, or 126.2%, to $12.5 million, primarily due to unrealized losses from interest rate swaps[135]. - Total other expense increased by $8.9 million, or 58.0%, to $24.3 million, primarily due to unrealized losses from interest rate swaps[147]. - Change in fair value of contingent consideration increased by $2.3 million, attributed to the revalued earn-out obligation associated with the Apption Labs business combination[134].

Traeger (COOK) came out with a quarterly loss of $0.06 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this barbecue grill maker would post earnings of $0.06 per share when it actually produced earnings of $0.06, delivering no surprise.Over the last four quarters, the company has not been able to surpass consensus EPS estimates.Traeger, which belongs to the Zacks C ...

TRAEGER ANNOUNCES THIRD QUARTER FISCAL 2024 RESULTS INCREASES OUTLOOK FOR FULL YEAR 2024 SALT LAKE CITY, Ut., November 6, 2024 (BUSINESS WIRE) -- Traeger, Inc. ("Traeger" or the "Company") (NYSE: COOK), creator and category leader of the wood pellet grill, today announced its financial results for the three months ended September 30, 2024. Third Quarter FY 24 Highlights • Total revenues increased 3.7% to $122.1 million • Grill revenues increased 32.5% to $74.9 million • Gross margin of 42.3%, up 440 basis p ...

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 ...

TRAEGER CHARTER SEAN DELEMELL I MAXE LEECHERSEY (DEN MIPLE BALLAIN. PREMIUM MARDWOOD PELLEYS TRAEGER RESENT n a B Z SECOND QUARTER 2024 (TIMBERLINE@) | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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 ...