Given the data that was released today, it’s safe to say that Blue Apron’s (NYSE:APRN) long-term investors are feeling blue. For one thing, APRN stock is sinking because Blue Apron reported top- and bottom-line fourth-quarter 2022 results that missed analyst estimates. Making matters worse, the company reportedly entered into a “pledge agreement” due to a missed payment from a funding source.
Based in New York, Blue Apron delivers meals and meal kits. It’s been challenging for the company to convince investors that it can prosper in 2022. After all, Blue Apron can’t count on the Covid-19 pandemic as a major business catalyst anymore.
So, today’s quarterly fiscal release was quite significant for Blue Apron, and the sense of disappointment is palpable. Wall Street expected Blue Apron to generate $114.5 million in Q3 2022 revenue, but the actual result was $109.67 million. Moreover, Blue Apron’s quarterly per-share net earnings loss of 74 cents was worse than the analyst consensus estimate of 53 cents.
What’s Happening With APRN Stock?
APRN stock declined 15% in early trading today as investors absorbed all of this unfortunate news. Along with everything that’s already been mentioned, Blue Apron withdrew its revenue outlook for full-year 2022.
Hold on — we’re not even finished with the bad news yet. As of Nov. 6, Blue Apron hadn’t received its “expected funding from affiliates of Joseph N. Sanberg.” Consequently, the company “entered into a pledge agreement with one of Mr. Sanberg’s affiliates to secure payment of the $56.5 million of private placement funding” owed to Blue Apron.
For some nervous investors, this undoubtedly raises more questions than answers. What’s causing the holdup? Is Sanberg unable or unwilling to make the payment? How might this impact Blue Apron’s business operations?
There’s a lot for current and prospective investors to consider today, and hardly any of it is positive. So, APRN stock is down for the day as Blue Apron delivers a big serving of uncertainty and disappointment along with its usual variety of meal kits.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
