AppHarvest Inc (NASDAQ:APPH) took a pasting in the early going Monday, on reporting preliminary FY21 net sales and non-GAAP Adjusted EBITDA at the higher end of guidance.
The company expects FY21 sales of $8.9 million - $9.1 million (consensus $8.53 million) versus the previously announced outlook of $7.0 million - $9.0 million.
Meanwhile, AppHarvest expects FY21 net loss of $(170.0) million - $(172.5) million. The company expects to record a non-cash charge in Q4 of $59.9 million to impair the carrying value of goodwill and definite lived intangible assets related to the recent acquisition of Root AI, Inc.
The company anticipates both robotics and software to become revenue-generating in 2023.
It sees an adjusted EBITDA loss of $(69.3) million - $(72.5) million versus prior outlook of $(70.0) million - $(75.0) million.
Said President David Lee, “The AppHarvest team has been squarely focused on the core business, and solid execution in the fourth quarter during the ramp up of our second growing season positions us to come in at the high end of our full-year net sales guidance range.
“We remain on track to quadruple our number of operating farms this year—adding three new farms that together will expand tomato capacity and diversify our growing capabilities into salad greens and berries,”
APPH shares faded 63 cents or 18.4% at $2.80 to $2.77 mid-morning Monday.
