Dow Jones Newswires: Traeger stock rallies 21% after company beats Q1 sales expectations

United States

Traeger reported higher-than-expected revenue in its latest quarter on Wednesday as additional price hikes helped offset a drop in units sold due to lower consumer demand for its grills.

The company COOK, -7.00% posted a first-quarter net profit of $ 8 million, or 7 cents a share, compared with a loss of $ 9 million, or 8 cents a share, for the same period a year earlier.

Stripping out one-time items, the company’s earnings per share came in at 4 cents. Analysts polled by FactSet had forecast adjusted earnings per share of 1 cent.

Revenue fell 32% to $ 153.2 million, beating analysts expectations of $ 152.6 million. On March 31, the company said it expected to post revenue between $ 145 million and $ 155 million.

Revenue coming from sales of grills fell 40% to $ 89.7 million due to lower volumes, it said.

The company’s sales continued to be pressured by retailer destocking and lower consumer demand in the first quarter, Chief Executive Jeremy Andrus said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix