The ready-to-eat meals industry has grown at a decent clip over the course of the past few years and one of the leading players in that particular industry is Home Bistro (OTCMKTS:HBIS). The company’s stock has however performed poorly over the course of the past weeks and has recorded a decline of as much as 20% over the course of the past month. In this situation, it may be important for investors to figure out if the stock could bounce back in the coming days.
Trading Data
On Monday, HBIS stock moved down 1.16% to $0.4250 with 552 shares, compared to its average volume of 4.7K shares. The stock moved within a range of $0.4100 – 0.4250 after opening trade at $0.41.
About The Company
Home Bistro (OTCMKTS:HBIS) is involved in creating and distributing heat to eat gourmet meals directly to customers. At this point in time, the range of meals includes options that have been inspired by some of the better-known chefs in the United States.
Home Bistro, Inc. Reports Record Revenue for Quarter Ended April 30, 2022
Although the stock has fared poorly it may be a good time to take a look at recent developments and then figure out if the stock can bounce back in the short term. Yesterday, Home Bistro was actually in the news after it announced its financial results for the second fiscal quarter that had ended on April 30, 2022.
The company managed to generate record revenues for the quarter of as much as $743,263 and it is going to be interesting to see if it leads to any traction for the stock or not. The revenue figure actually represented a year-on-year rise of as much as 127% from the revenues of $328,024 in the prior-year period.
The successful integration of the Model Meals range and the rising sales in some of the specific chef-inspired meals were the factors behind the record revenue figure for the quarter. However, the operating expenses for the period came in at $967,006 and that was a higher figure than the operating expenses of $779,584 in the prior-year period.
Last but certainly not least, the net losses actually widened despite the record revenues as Home Bistro reported a net loss of $3.1 million. In the prior-year period, the net loss had stood at $1 million.
Key Quote
Zalmi Duchman, Home Bistro CEO, stated, “With more chefs coming online earlier this fiscal year, we are continuing to see record top-line growth. As I have previously stated, our goal is to continue growing our revenue at a significant rate while eyeing profitability by 2023. To this end, over the past few months, we have been taking significant steps to increase our profit margin and considerably decrease our general and administrative expenses.
Technical Data
HBIS stock is trading below the 20-Day and 50-Day Moving averages of $0.46 and $0.51 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.94.
