Appharvest Inc Down 13.01% To $0.50 After Earnings Miss

Appharvest Inc (APPH) reported less than expected earnings this afternoon for Q1 2023.

The consensus among analysts for Appharvest Inc was for an earnings per share (EPS) loss of $0.22 per share. The firm failed to meet those projections, reporting an EPS loss of $0.26 per share, a negative surprise of $0.04 (-18%). Profits rose 13% year-over-year after reporting an EPS loss of $0.30 per share in its year-ago quarter. The positive growth rate signals that the Consumer Defensive company is performing well amid recent economic conditions.

Consensus analyst estimates were at $9.4 million. The Consumer Defensive company managed to surpass those expectations for its first quarter with revenue of $13 million, a positive revenue surprise of $3.6 million (39%). The firm managed 152% growth year-over-year due to Appharvest Inc reporting quarterly revenue of $5.2 million in its year-ago quarter. Appharvest Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 13.01% to $0.50 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Appharvest Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 10, putting Appharvest Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $0.42 on April 27, 2023 and set a 52-week high on July 8, 2022 at $4.84.

AppHarvest Inc operates in the agriculture sector. It is an agriculture technology company. The company is engaged in developing and operating controlled environment indoor farms.