Weber Inc (NYSE: WEBR) shares are trading higher Monday after the company reported better-than-expected top-line results and announced a cost management plan.
Weber said fiscal third-quarter revenue decreased 21% year-over-year to $528 million, which beat average analyst estimates of $526.17 million, according to Benzinga Pro. The company reported a quarterly net loss of $52 million, or 41 cents per share, which was down from net income of $18 million in the prior year's quarter.
Weber said its gross profit was lower in the third quarter, primarily due to substantial freight and commodity cost increases, promotional activity to enhance retail sell through, negative country and product mix shift and significant currency devaluations.
"Our third quarter performance reflects the margin pressures we are experiencing as a result of global headwinds in our current operating environment. To strengthen our financial position for fiscal year 2023 and beyond, we are introducing a comprehensive cash flow and cost management plan," said Alan Matula, interim CEO of Weber.
Weber's cost management plan is expected to manage cash flows, preserve liquidity, expand gross margins and reduce SG&A expenses. Planned actions include the suspension of the company's quarterly dividend, a focused reduction of COGS and SG&A expenses, a reduction in force that removes management layers in the organization and the tightening of global inventory levels and working capital positions.
Weber expects its plan to result in at least $110 million of cash benefit in fiscal year 2023.
See Also: Here's Why Exxon Mobil (NYSE:XOM) Stock Is Falling
WEBR Price Action: Weber has a 52-week high of $13.08 and a 52-week low of $5.72.
The stock was up 10.4% at $7.64 at time of publication.
Photo: Bruno from Pixabay.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga