BARK (NYSE:BARK) Posts Quarterly Earnings Results, Beats Expectations By $0.48 EPS

BARK (NYSE:BARK) released its earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.40) by $0.48, Zacks reports. BARK had a negative net margin of 8.42% and a negative return on equity of 35.25%. The firm 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 Trading Up 22.8%

Shares of NYSE BARK traded up $2.09 during mid-day trading on Friday, reaching $11.25. The company had a trading volume of 217,898 shares, compared to its average volume of 42,203. The stock has a market cap of $101.60 million, a price-to-earnings ratio of -3.14 and a beta of 1.95. BARK has a 52 week low of $8.15 and a 52 week high of $20.79. The business’s 50-day moving average is $9.52 and its 200-day moving average is $11.71.

Analysts Set New Price Targets

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

Institutional Investors Weigh In On BARK

Several large investors have recently added to or reduced their stakes in the stock. Gabelli Funds LLC boosted 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 valued at $125,000 after purchasing an additional 50,000 shares during the period. State of Wyoming increased its holdings in BARK by 40.2% during the 2nd quarter. State of Wyoming now owns 177,988 shares of the company’s stock worth $157,000 after purchasing an additional 51,029 shares during the period. Murchinson Ltd. raised its position in BARK by 150.7% during the 2nd quarter. Murchinson Ltd. now owns 410,043 shares of the company’s stock valued at $361,000 after purchasing an additional 246,500 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in BARK by 15.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,692,503 shares of the company’s stock valued at $1,489,000 after purchasing an additional 230,131 shares in the last quarter. Finally, NewEdge Advisors LLC purchased a new stake in shares of BARK in the 1st quarter worth $65,000. 28.76% of the stock is owned by hedge funds and other institutional investors.

About BARK

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.