BellRing Slashes Full-Year EBITDA Outlook 25% as Shares Tumble 40%
BAC•BellRing reported Q2 earnings that missed EBITDA expectations, cutting full-year adjusted EBITDA outlook by about 25% to $315–$335 million. Shares plunged nearly 40% after Morgan Stanley, Bernstein and Bank of America downgraded ratings and slashed price targets by up to 68%.
1. Q2 Earnings Miss and Guidance Revision
BellRing’s Q2 results showed an adjusted EBITDA miss and prompted management to cut full-year EBITDA guidance to $315–$335 million from $425–$440 million. Net sales growth outlook was trimmed to flat–2% from a prior range of 4–6%, reflecting weaker demand and margin pressure.
2. Analyst Downgrades and Price Target Cuts
On the earnings miss, Morgan Stanley shifted its rating to Equal-weight and lowered its price target to $13 from $24. Bernstein moved to Market-Perform with a $11 target (down from $35) and Bank of America downgraded to Underperform, cutting its objective to $10 from $19.
3. Competitive and Cost Headwinds
Management cited a ‘perfect storm’ of heightened consumer price sensitivity, intensified promotional pricing and rising input costs. Surging milk protein concentrate and dry whey costs, along with increasing freight expenses, are expected to weigh on margins into fiscal 2027, challenging recovery prospects.
