Beyond Meat Earnings Go Beyond the Pale for Investors
Beyond Meat reported a surprise third-quarter net loss late on Monday and investors were not pleased.
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When Beyond Meat Inc. (NASDAQ: BYND) reported its most recent quarterly results after the markets closed on Monday, the faux meat firm posted a net loss of $0.28 per share and $94.4 million in revenue. The consensus estimates had called for $0.05 in earnings per share (EPS) and revenue of $132.18 million. The third quarter of last year reportedly had EPS of $0.06 on $91.96 million in revenue.
During the latest quarter, net revenues increased by 2.7% year over year. Growth in net revenues was primarily due to increased retail channel sales, largely offset by a decline in foodservice channel sales due to the continued impact of COVID-19 on foodservice demand levels.
In terms of the breakdown, Beyond Meat’s Retail segment revenue increased 38.8% year over year to $70.03 million, and the Restaurant and Foodservice segment revenue decreased by 41.2% to $24.40 million.
Beyond Meat still has suspended its outlook for the 2020 full year. The firm said that this ongoing evolution in consumer demand patterns across retail and foodservice channels has added a higher degree of uncertainty to the company’s ability to forecast demand beyond a limited timeframe. Consensus analyst estimates call for $0.13 in earnings per share and $479.77 million in revenue for the year.
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On the books, Beyond Meat’s cash and cash equivalents totaled $214.6 million at the end of the quarter, with total outstanding debt of $50.0 million.
Beyond Meat stock traded down about 21% to $118.69 early Tuesday, in a 52-week range of $48.18 to $197.50. The consensus price target is $129.21.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
