AppHarvest, Inc. (APPH) stock is gloomy today following the release of second-quarter 2021 financial results. APPH stock price saw a decline of 27.65% to drop at $8.66 a share at the time of this writing. The stock was also gloomy in the previous trade and went low by 1.07% at closing. Let’s deep dive to explore more of it.
Second Quarter 2021 Financial Results:
AppHarvest stock generated $3.1 million from the net sales in Q2,2021, $0.8 million higher than Q1,2021. The stock sold 8.6 million pounds of tomatoes in the reported quarter, 4.8 million higher than last quarter.
APPH stock reported $32.0 million and $22.6 million net loss and non-GAAP adjusted EBITDA loss in the reported quarter. These stats are significantly higher than net loss and an adjusted EBITDA loss of $1.6 million in the same period of the previous year.
Many factors adversely impacted the second quarter of 2021 financial results of APPH stock. The market prices of tomatoes historically decreased in the reported tenure according to USDA reports. Moreover, a sharp increase in full production at APPH stock’s first CEA facility greatly impacted the financial position of this stock. The stock faced severe labor and productivity challenges that resulted overall lower No. 1-grade production yields. Higher distributions and shipping fees have added more pain.
Milestone Achieved by APPH stock:
Since the beginning of harvesting fresh produce, APPH stock has achieved several milestones so far. It effectively has done staffing via local labor for Morehead farm. Raised new, non-dilutive forms of capital for the funding of its developments. The stock secured the future building sites in no time. A plethora of investors and policymakers across the globe have shown interest in the CEA industry. Such developments have driven the transformation process of assets and teams into a global authority in the CEA sector.
The APPH stock announced the three operating companies under one parent company. This action will able child companies to pursue distinct opportunities in order to grow more broadly within CEA. These companies include
- “AppalachiaCo,”, which will consist of high-tech indoor farms in Central Appalachia and value-added products and business.
- “TechCo,” will have key technologies of APPH stock.
- “GrowCo,” will pursue opportunities related to CEA even outside Central Appalachia and across the globe.
Conclusion:
It seems that investors didn’t like the second quarter of 2021 financial results of APPH stock. The stock faced harsh situations in the second quarter of 2021 in terms of tomatoes sales, labor, and productivity challenges. A thorough fundamental, as well as technical analysis, is necessary before adding this stock to the portfolio.
