Reed's Earnings Miss Due To Tight Credit Terms, Expects To Turn Cash Flow Positive
Portfolio Pulse from Shivani Kumaresan
Reed's Inc reported a Q1 FY23 sales decrease of 8.4% YoY to $11.16 million, missing the analyst consensus estimate of $14.12 million. The decrease was primarily due to tightened credit terms from suppliers, impacting inventory. The company expects to turn cash flow positive in H2 2023.
June 01, 2023 | 4:16 pm
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Reed's Q1 FY23 sales decreased 8.4% YoY, missing estimates due to tightened credit terms. The company expects to turn cash flow positive in H2 2023.
Reed's Q1 sales missed estimates primarily due to tightened credit terms from suppliers, which negatively impacted inventory. This could lead to short-term bearish sentiment for the stock. However, the company's outlook for turning cash flow positive in H2 2023 may provide some optimism for investors.
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