Shares of Blue Apron (APRN - Free Report) fell more than 15% in morning trading Thursday after the newly-public company’s first-ever earnings report failed to satisfy investors.
The popular meal-kit delivery brand recorded revenue of $238 million in the quarter, which actually beat our consensus estimate of $235 million. However, higher-than-expected costs took a massive chunk out of its bottom line.
The Zacks Consensus Estimate called for a loss of 30 cents per share, but Blue Apron’s reported loss of 47 cents per share was far below that mark. The company cited unexpected costs related to the launch of a new manufacturing facility in New Jersey for much of this disappointment, although investors also appear to be concerned about marketing costs.
Blue Apron spent about 14.5% of its revenue on marketing expenses in the latest quarter, which is down from the 18% level that it recorded in 2016. However, management noted that its client base shrank 9% from the first quarter to the second quarter due to this reduction in marketing costs.
On top of today’s terrible share price movement, which has seen APRN dip new low of just $5.03 per share, plenty of critical investors took to social media to offer commentary on the company’s first report.
Here are some of the funniest—and harshest—reactions from Twitter:
And of course, we also spotted some quality reactions on StockTwits:
$APRN ouch— Michael (@madg7948) Aug. 10 at 09:24 AM
$APRN I have no interest in here (I would short it if i could). I just can't help but to laugh at how sad this thing is.— Pepe the Frog (@TheBullishFrog) Aug. 10 at 09:26 AM
$APRN Maybe they should switch to survival meal packages..WWIII is around the corner— Wil (@porscheliu) Aug. 10 at 09:13 AM
Want to join the conversation? Make sure to follow @ZacksResearch on Twitter and ZacksResearch on StockTwits!
And don’t forget to check back here for our full analysis on Blue Apron’s first earnings report!
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