Wall Street Projections for Blue Apron’s Q4 2018 Bottom Line



EPS projections

Blue Apron (APRN) is slated to announce its fourth-quarter results on January 31. Wall Street expects the company’s adjusted EPS to improve YoY (year-over-year) to -$0.17 from the -$0.20 reported in the same quarter last year. The company is projected to record a net loss of $32.1 million and adjusted EBITDA of -$13.2 million. The company’s management hasn’t provided bottom-line guidance for the fourth quarter.

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Blue Apron is focused on cutting costs and improving operational efficiency across the board. As a part of making the organization leaner, Blue Apron trimmed its workforce by 4%. However, the reduction is expected to create $16 million in annual savings in 2019. But at the same time, the move will also lead to $1.6 million in employee severance charges and other exit costs. The entire effect should wane in the fourth quarter.

For 2018, Blue Apron expects adjusted EBITDA to be between -$65 million and -$70 million. On the third quarter of 2018 conference call, Blue Apron highlighted the possibility of its adjusted EBITDA being positive in fiscal 2019 owing to extensive restructuring measures. In January, the company had again reaffirmed the possibility of achieving positive adjusted EBITDA in the first quarter of fiscal 2019 and full fiscal 2019.

Past quarter

In the third quarter, Blue Apron’s adjusted EPS came in at -$0.18, which was an improvement compared to analysts’ estimates of -$0.21 and EPS of -$0.47 reported in the same quarter last year. Cost-cutting measures cushioned the company’s bottom line.

Blue Apron witnessed 1,010 basis points of improvement in its cost of goods sold (excluding depreciation and amortization) expense rate to 68.0%, mainly due to efficiency achieved in food and labor costs. Blue Apron’s adjusted EBITDA came in at -$18.8 million in the third quarter versus -$48.0 million reported in the same quarter of 2017.


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