Allbirds Stock (NASDAQ: BIRD) Gains Pre-Market as Earnings Beat The Street

Allbirds, Inc. (NASDAQ: BIRD), reported a fourth-quarter EPS of -$3.23, surpassing consensus estimates by 22 cents. The release of the quarterly results has seen the stock rise 2.9% in the pre-market, having initially fallen almost 7% as the numbers first came through.

Revenue for the fourth quarter was $55.9 million, a mild beat on consensus estimates of $55.86 million. Over the past year of trading, Allbirds' stock has fallen by 66.88%, bringing the current price close to 52 week lows. There are signs however that the company may be finding some firmer ground.

CEO Joe Vernachio expressed optimism about the company's development in 2024. Allbirds has particularly strengthened its international presence through new distribution agreements and made significant progress in margin improvement and cost reduction. Additionally, the company launched a product and marketing offensive, which it expects will lead to a recovery in trends in the second half of the year, including the targeted revenue growth for the fourth quarter.

With the company's guidance of $175million-$195million in revenue for FY25 being above the consensus $181.26million, the mid-point also offers some outperformance on expectations.

Allbirds, based in San Francisco, California, operates in the Consumer Cyclical sector and the apparel retail industry. The company offers a range of lifestyle and performance shoes, as well as apparel, which it sells through retail stores and online. The company’s market capitalisation is approximately $48.86 million, and it has a 52-week stock price range between $5.76 and $19.00.

The company has no liabilities related to a $50 million revolving credit facility and reports having $66.7 million in cash and cash equivalents as of December 31, 2024. This financial stability and targeted investments are expected to support a positive turnaround in revenue growth in the second half of the year.

Allbirds expects to deliver a loss of between $55million – $65million on the year, with a path to profitability still a way away. With the stock having fallen so substantially in recent years, the market cap of $48.86M stands in stark contrast to what once was. A beat on earnings is a firm positive, but if past periods are anything to go by, the road ahead is unlikely to be entirely smooth.