Blue Apron shares pop on forecast of 1Q profitability

Shares of Blue Apron Holdings Inc (NYSE:APRN) pushed higher Tuesday after the meal-kit provider confirmed its guidance for its latest fiscal quarter and said its new partnership with WW, formerly known as Weight Watchers, is seeing robust demand.

Issuing a statement ahead of the release of its results later this month, the company said: “Based on its current view of the business, Blue Apron plans to reaffirm confidence in achieving profitability on an adjusted EBITDA basis both in the first quarter of 2019 and for full year 2019 as it actively pursues the appropriate strategies to create value for its stakeholders.”

READ: Blue Apron misses on revenue in 3Q, cuts workforce to reach profitability in 2019

The positive outlook pleased investors who sent Blue Apron shares up 8.7% to $1.13 in pre-market trade on Tuesday.

In other news, Blue Apron reports that its partnership with the diet chain WW, launched at the end of December, is seeing “higher-than-expected demand” to date.

The company will unveil its fourth-quarter and fiscal-year 2018 financial results before the market opens on January 31.

READ: Walmart’s Jet.com to serve up Blue Apron’s meal kits

Its presentation on its latest earnings will also include an update on its strategic relationship with the online retailer Jet as the two companies work to bring same-day and next-day delivery of Blue Apron meals to households across New York City. In addition to this, new product and platform innovations, including a new offering designed for online and traditional retail outlets, will also be announced soon.

Blue Apron faces fierce competition from services like HelloFresh and the grocery delivery services provided by Fresh Direct and Amazon.com Inc (NASDAQ:AMZN).

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors