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Blue Apron Swings to Profit, Sees Third-Quarter Loss

Blue Apron swung to a second-quarter profit and expects a third-quarter loss. The shares are lower on Wednesday.
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Blue Apron  (APRN) - Get Free Report shares dropped after the New York meal-kit producer swung to a second-quarter profit and said it expected a third-quarter loss.. 

The shares at last check were off 14% at $12.06.

Second-quarter profit was $1.1 million, or 8 cents a share, compared with a loss of $7.7 million, or 59 cents, in the year-earlier quarter. 

For the latest quarter, on an adjusted basis, the company reported earnings of 8 cents a share.

Revenue rose 10% year over year to $131 million. 

For the third quarter, Blue Apron said it expected a net loss of no more than $18 million. The outlook "[assumes] similar historical seasonal demand and cost trends."

The company expects Q3 revenue to grow 13% from a year earlier to $112 million. 

The Wall Street Journal reported that this was Blue Apron's first profitable quarter since it went public three years ago.

Regarding the second quarter, "our progress with our strategic-growth plan, together with the increase in demand we saw from the covid-19 pandemic, resulted in solid and continued year-over-year growth in key customer metrics," Chief Executive Linda Findley Kozlowski said. 

The pandemic both required - because of government-ordered lockdowns - and prompted people to stay home and cook instead of going out to restaurants.

Investors may be concerned about the sustainability of the company's turnaround as it benefits from coronavirus lockdown parameters. 

"We generated strong adjusted [earnings before interest, taxes, depreciation and amortization] and free cash flow in the second quarter, which adds financial flexibility for Blue Apron to continue executing our strategic growth plan," Kozlowski said. 

The company cut product, technology, general and administrative expenses by 7% year over year, to $32.5 million from $35.1 million, in part due to the closing of its facility in Arlington, Texas, in May.