This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB9M0BY_M.jpg
Q3 sales are expected to be in the range of $545-$550 million, significantly below the consensus estimate of $625.6M. Each of the company’s reportable segments is expected to report year-over-year sales declines driven by lower volumes from rapid customer de-stocking and partially offset by favorable pricing. Adjusted EBITDA is seen at $130-$135M, down approximately 22–25% year-over-year.
Due to ongoing customer de-stocking, considerable macroeconomic uncertainty, and very limited visibility into global consumer demand, the company revised its fiscal 2023 financial outlook. Although the company cannot determine when the de-stocking will cease, if the current dynamics experienced in Q3 continue into Q4, sales are projected to fall within the $2.2 billion range, with adjusted EBITDA expected to range around $500M.
Furthermore, the company’s Board of Directors approved a new $1B evergreen share repurchase authorization, replacing the previous $500M evergreen authorization under which there was $200M remaining.
By Davit Kirakosyan
