Why The Beachbody Company Stock Plummeted 27.5% at the Open Today
Shares of The Beachbody Company (NYSE: BODY), which provides fitness subscription services and sells fitness and wellness products, fell sharply in early trading on Nov. 16, dropping as much as 27.5% in the first few minutes of trading. About a half an hour into the day the stock was still off by roughly 25%. The company's post-close earnings release on Nov. 15 was the likely cause of the decline. You don't need to look too far to see why investors were so unhappy.
On the top line, The Beachbody Company's third-quarter 2021 sales were down 17% year over year. Digital revenue dropped 5% and nutrition sales fell 29%. The company's connected fitness revenue was $5.9 million, however the division wasn't a part of the company in the year-ago period (it was acquired in June), so there's no comparison point. That said, of the 14,700 exercise bikes sold in the third quarter only 44% were delivered, so revenue from these sales, and associated subscriptions, wasn't recorded in that three-month period. The company lost $0.13 per share in the third quarter versus a profit of $0.05 per share in the same quarter of 2020.
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Source Fool.com
