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- 1 Stock price of BRC nosedived despite better than expected earnings.
- 2 BRCC stock trading at its lowest since listing.
BRCC stock price, stock of popular ground coffee company Black Rifle Coffee Company, witnessed another day of falling and hitted 52-weeks low. The recent decline in its price came in the wake of the company’s fourth quarter 2022 earnings report. Though the company successfully managed to achieve the set goals by the management, future outlook seems unaccepted to the investors.
Better Earnings, Weak Outlook
The company found itself in good shape in terms of revenue with generating 93.61 million USD in Q4. The numbers were within the management’s estimation and about 30% better year over year. However the earnings per share (EPS) reported -0.09 USD which is less than its estimated value of -0.69. Additionally, the company accepted a relatively lower guidance for this year.
BRC is involved in the business of ready-to-drink coffee beverages and runs its own branded stores. Additionally the ground coffee seller also partnered with retail giant Walmart.
Continued opening of its new “outposts” the company is serious about its expansion. Report suggests it opened in four more locations during Q4 2022. With this addition, the total number of BRC outposts reached 26 at present. Out of the total locations, up to 45% of them are now able to serve ready-to-drink beverages in comparison to last year. The partnership with Walmart resulted in its making distribution of ground coffee up to four times.
BRCC Stock Price Chart Movement
Following the negative sentiment after the report, BRCC stock price continued its downtrend movement. The day earlier, it lost about 10% in its value before losing over 6% more in the last trading session. Currently the stock is trading at 5.17 USD, the lowest trading price since BRC Inc stock’s listing in May 2021.
BRCC stock is moving sideways for months now while maintaining minimum volatility. The stock price is consistently below its 200 EMA, showcasing long term downtrend movement. In the past months, it tested its resistance at 8 USD but was hardly able to attain it. Last approach in February also failed as the price consistently dropped since then. It broke its support at 5.7 USD and reached the currency price. There was also a surge in the selling volume of BRCC stock.
TheCoinRepublic reported earlier that the coffee company has been going through a downturn since last month and lost about 27.3% of its value since then. The company was also making efforts in order to navigate through such situations. It brought limited edition coffee bundles and merchandise.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
