New Age Beverages (NASDAQ: NBEV) announced its fourth quarter revenue of the year posting $14 million in revenue which is slightly above Wall Street’s $13.54 million revenue estimate for the period. This is also an improvement over fourth quarter revenues from the previous year which stood at $11.25 million.
However, many investors are taking this with a grain of salt as the company also reported operating loss of $10.13 million for the quarter. This more than doubles its operating losses of $4.87 million for the same period of the prior year.
In an Earnings Conference Call conducted on March 29, 2019, Brent Willis, the company’s CEO and Director stated that, “2018 was an extremely challenging year for the company. And despite being up 24% in Q4 in net revenue, none of us are happy with the performance. So many small companies in this sector struggle with working capital issues, and last year, New Age was dramatically affected across every aspect of its business and every aspect of the P&L. We basically spent the entire year recovering from a failed financing with PNC in the beginning of the year. But through that process, we were able to maintain all of our major customers without a single loss, and in the fourth quarter, did indeed recover to fund the firm and replenish inventory in the last 6 weeks of the year.”
New Age Beverages remains upbeat and is expecting to generate more than $320 million in net revenue - a vast improvement over its projected $15 million in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) in 2019.
Investment analysts at Alliance Global Partners published a research a few days ago suggesting that New Age Beverages Corporation (NASDAQ:NBEV) is now rated as Buy. Their price target on the stock stands at $8 - so the stock should be a good play if you're looking to invest at the current value of +/- $5/Share.
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