How Blue Apron Is Making Its Comeback From the Grave

Blue Apron Holdings Inc. (NYSE: APRN) shares shot up on Tuesday after the meal delivery service provided an update on its fourth-quarter results and partnership with Weight Watchers International Inc. (NASDAQ: WTW).

Based on its current view of the business, Blue Apron expects to achieve profitability on an adjusted EBITDA basis both in the first quarter of 2019 and for full year. Consensus estimates call for a net loss of $0.09 per share in the fiscal first quarter of 2019.

Note that the firm will announce its fourth-quarter results on January 31. At that time, Blue Apron will provide further updates for its business including the following:

  • An update on Blue Apron’s sharpened focus on attracting and engaging consumers with proven affinity and retention within its direct-to-consumer platform as well as its continued gains in operational efficiencies, led by the company’s Linden fulfillment center;
  • The favorable consumer response the company is seeing to its exclusive direct-to-consumer national partnership with WW, launched at the end of December, which has experienced higher-than-expected demand to date;
  • An update on the strategic relationship with Jet as both companies work together to bring same-day and next-day delivery of Blue Apron meals to households across New York City; and
  • Upcoming product and platform innovations, including a new offering specifically designed for online and brick-and-mortar retail that will be announced soon.

The company partnered with Weight Watchers in late December. The deal features a weekly rotating selection of recipes inspired by the WW Freestyle program and available for home delivery. Since this deal took place, Blue Apron shares are up roughly 36%.

It’s worth pointing out that Blue Apron was the target for short sellers all throughout 2018. This was reflected in its share price sliding lower and lower, ultimately down about 75%, in 2018.

Shares of Blue Apron were last seen up about 20% on the day, at $1.25 in a 52-week range of $0.65 to $4.20. The stock has a consensus analyst price target of $1.46.

Weight Watchers traded up about 1% at $32.85 a share. The 52-week range is $31.58 to $105.73, and the consensus analyst target is $82.50.

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