Waitr Disappoints With 4Q Results; Shares Slide 15%

Shares of Waitr Holdings were down 14.5% in Tuesday’s pre-market session after the on-demand ordering and delivery company reported fourth-quarter results that missed the Street’s estimates.

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Waitr (WTRH) reported 4Q revenues of $46.8 million, which fell short of analysts’ estimates of about $51.1 million but grew 8.6% year-over-year. The company’s average daily orders amounted to 34,628 in 4Q, with active diners of approximately 2 million at the end of Dec. 31, 2020.

Earnings of $0.02 per share missed consensus estimates of $0.04 per share. The company reported a loss of $0.28 per share in the year-ago quarter. Adjusted EBITDA came at $9.9 million, versus an adjusted EBITDA loss of $14.4 million a year earlier.

The company’s CEO, Carl Grimstad, said, “Our financial results for 2020 reflect the implementation of a myriad of strategic initiatives focused on operating and growing a profitable business, with eleven straight months of consistent profitability and positive operating cash flow.” (See Waitr Holdings stock analysis on TipRanks)

Looking ahead to 2021, the company expects to focus “on profitable growth, both through organic expansion and strategic acquisitions to bolster our delivery footprint and expansion into new verticals,” said Grimstad.

Following the earnings, Deutsche Bank analyst Kunal Madhukar said that he thinks the stock has “largely been below the radar” as investors shifted focus to other larger delivery players.

As a result, Madhukar upgraded the stock to Buy from Hold and raised the price target to $4 (18.7% upside potential), up from $3.80. Shares have skyrocketed about 732.5% over the past year.

Furthermore, TipRanks data shows that financial blogger opinions are 87% Bullish, compared to a sector average of 69%.