Shares of Traeger (NYSE: COOK) are down almost 10% in pre-open after the company presented its Q2 results.

Traeger reported Q2 EPS of negative $0.05, versus $0.17 reported last year. Revenue for the quarter came in at $213 million, versus $153.2 million reported last year.

"We are extremely pleased and energized by the momentum in our business as we continue to disrupt the grilling industry. Our strong revenue growth as well as the ongoing expansion and engagement of our passionate and engaged Traegerhood community demonstrate the power of our brand and our business model,” commented Jeremy Andrus, CEO of Traeger.

On the outlook front, COOK sees FY2021 revenue between $760 and $770 million. EBITDA is expected between $103 million and $108 million.

Stifel analyst Jim Duffy said that Q2 demand indicators are solid but incremental costs weighed on results. The analyst left the $31.00 per share price unchanged.

“FY21 guidance outlined a more confident view on 2H revenue but, accounting for incremental adjustments, a more cautious like for like view on profitability. Since the IPO, supply chain and logistics challenges have escalated and guidance reflects incremental associated expense of approximately $7mn. We are focused on demand indicators rather than transient pressure to earnings power from supply chain and logistics challenges. For COOK, we remain enthused by green pasture household penetration opportunities and are encouraged by comments foreshadowing planned enhancements to the digital ecosystem in the next 6 mos. and a new product offering is slated for 4Q. We see Traeger uniquely positioned at the intersection of secular trends and remain comfortably with our Buy rating,” Duffy said in a note sent to clients.

Telsey analyst Joseph Feldman reiterated an Outperform rating and a $30.00 per share price target.

“Traeger should continue to benefit from strong customer demand for its products over the next couple of years, boosted by the shift in spending toward higher-quality, innovative grills, and ongoing strength in the outdoor cooking market—partly supported by the suburbanization, backyard recreation, and at-home experiential eating trends related to COVID-19. In addition to the industry tailwinds, Traeger has company-specific growth initiatives that include: 1) raising brand awareness through increased marketing and existing customer engagement; 2) expanding internationally; 3) introducing new products and adding adjacent categories; 4) optimizing retail distribution to improve existing store productivity; and, 5) increasing DTC penetration,” Feldman said in a client note.