BRCC Earnings Prediction
The chart below shows how BRCC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BRCC sees a +0.42% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by +1.33%. This data can give you a slight idea of what to expect for the next quarter's release.
BRCC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
105.88M
-11.51%
7.81%
Gross Margin
38.14%
44.09%
-9.41%
Operating Margin
4.42%
149.17%
83.40%
Net Margin
-6.36%
-45.78%
347.89%
EPS
-0.03
-57.14%
200.00%
No Data Available
BRCC Earnings Analysis
BRC Inc Corporation (BRCC.N) Earnings Conference Call
Positive
EBITDA Growth and Efficiency: Adjusted EBITDA tripled, indicating strong financial performance and operational efficiency improvements.
Gross Margin Improvement: Gross margin improved by 9.5 points, showcasing enhanced profitability and cost management.
Packaged Coffee Distribution Growth: Distribution growth in packaged coffee at grocery increased by 28 points to 45% ACV, reflecting successful market penetration and brand expansion.
Sales Growth Resilience: Black Rifle Coffee sales grew by 22% in a declining coffee category, demonstrating strong brand resilience and consumer demand.
Strong Launch Performance: The launch of Black Rifle Energy is off to a strong start, with 17% ACV in its first month and plans for significant growth in 2025.
Product Innovation Commitment: The company is committed to product innovation, with plans to expand into new segments and enhance existing product lines.
Direct to Consumer Focus: The Direct to Consumer segment remains a core part of the business, focusing on subscriber growth and improving customer experience.
Energy Product Line Growth: The partnership with Keurig Dr Pepper is expected to drive significant growth in the energy product line, leveraging their distribution network.
Community Engagement and Loyalty: The company has a strong commitment to community outreach, supporting veterans and first responders, which enhances brand loyalty and customer connection.
Negative
Revenue Decline Analysis: Revenue declined by 1% in 2024 compared to 2023, indicating a potential stagnation in growth despite some segments performing well.
DTC Revenue Decline: Direct to Consumer (DTC) segment saw a significant revenue decline of 14% in 2024, attributed to shifting consumer preferences and a strategic reallocation of resources towards wholesale.
Revenue Decline Analysis: Fourth quarter revenue declined by 12% year over year, primarily due to significant depletion of ready-to-drink (RTD) inventory and continued softness in the coffee and RTD categories.
EBITDA Decline Analysis: Adjusted EBITDA declined by $2.2 million in the fourth quarter compared to the prior year, primarily due to changes in revenue and increased trade spending.
Gross Margin Decline Forecast: Gross margin is expected to decrease to 37% to 39% in 2025, down from 41.2% in 2024, due to various headwinds including green coffee inflation and trade investments.
Revenue Decline Anticipation: The company anticipates the first quarter of 2025 to be the lowest for revenue generation, with a significant headwind from the cycling of prior year barter transactions.
Customer Growth Challenges: The largest customer showed signs of flattening growth, which was expected as the company expands into other markets, indicating potential challenges in maintaining growth with key accounts.
BRCC FAQs
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BRCC Earning Call Sentiment
Earnings call transcript: Black Rifle Coffee Co. misses Q4 2024 EPS forecast
BRCC.N
8.67%Positive
The earnings call reveals strong financial performance, with improved EBITDA and free cash flow. The launch of Black Rifle Energy with Keurig Dr. Pepper is a significant partnership expected to boost short-term stock price. Despite a slight revenue decline, optimistic guidance and strategic investments in wholesale and operational excellence suggest growth potential. The Q&A section highlighted management's confidence in distribution growth and marketing plans. While there are some concerns about DTC and barter transaction impacts, overall sentiment is positive, indicating a likely stock price increase of 2% to 8%.
