Consumer Products

Will Beyond Meat Get Roasted After Q3 Earnings?

Beyond Meat Inc. (NASDAQ: BYND) is set to release its third-quarter financial report after the closing bell on Monday. The consensus estimates call for $0.03 in earnings per share (EPS) and $82.23 million in revenue.

Without a doubt, the initial public offering of Beyond Meat has been above and beyond stellar in 2019. That comes at a time when many of the so-called unicorn IPOs have seen their multibillion-dollar valuations take a serious belly flop into the pool that is the stock market.

Beyond Meat’s valuation previously was ignored, and it was valued at more than $10 billion earlier in the year. Now that more competition is coming on line and now that some people realized its market cap might be worth more than the entire meat replacement industry sales for some time, Wall Street has tempered at least some of its expectations.

Beyond Meat has revolutionized the plant-based protein market for meat alternatives, but it faces stiff competition from Tyson, Impossible, Unilever, Nestle and others. Meat alternatives offerings have been on the shelves for years from the likes of Field Roast, MorningStar Farms, Gardein, Boca, Gardenburger (Kellogg) and others.

Overall, Beyond Meat shares have vastly outperformed the broad markets, with the stock up about 53% since it came public in May. However, in the past quarter the stock has dropped by about 55%.

Multiple analyst calls released a wrecking ball on Beyond Meat shares during the week of October 18. What is interesting about the calls is that most of the views concern valuations rather than over the company’s leadership and positioning with key food stores and restaurants that can vault up its sales.

Here’s what analysts had to say about Beyond Meat ahead of the report:

  • CFRA has a Sell rating with a $120 price target.
  • Sanford Bernstein’s Market Perform rating comes with a $130 target.
  • Merrill Lynch has a Neutral rating with a $150 target price.
  • Wells Fargo rates it as Market Perform with a $125 price target.
  • Barclays has an Overweight rating and a $185 target price.

Shares of Beyond Meat traded at $100.49 on Monday, in a 52-week range of $45.00 to $239.71. The consensus price target is $146.70.