Beyond Meat (NASDAQ:BYND) Releases Quarterly Earnings Results, Misses Estimates By $0.24 EPS

Key Points

• Beyond Meat reported an adjusted loss of $2.21 per share, missing analyst estimates by $0.24, while quarterly revenue of $64.53 million topped expectations of $62 million.
• Revenue fell 8.1% year over year, and Q4 guidance of $54 million–$59 million points to another sequential decline. Gross margin improved to 19.3% from 7.4% a year earlier, and the adjusted EBITDA loss narrowed.
• Analysts’ consensus rating is “Strong Sell,” with three Sell ratings and two Hold ratings; shares traded at $7.15 on Wednesday.

Beyond Meat (NASDAQ:BYND - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($2.21) EPS for the quarter, missing the consensus estimate of ($1.97) by ($0.24), FiscalAI reports. The company had revenue of $64.53 million during the quarter, compared to analysts' expectations of $62.00 million. Beyond Meat had a net margin of 75.40% and a negative return on equity of 100.55%.

Here are the key takeaways from Beyond Meat's conference call:

• Revenue fell 8.1% year over year to $64.5 million, with weakness in U.S. retail and food service and international food service. Q4 revenue guidance of $54 million–$59 million implies a further sequential decline.
• Gross margin rose to 19.3% from 7.4% a year ago, its highest level in five years, while COGS per pound fell 10.1% to a five-year low of $3.90. Management said efficiency gains are progress toward its longer-term goal of margins above 30%.
• The adjusted EBITDA loss narrowed to $24.6 million from $33.5 million, and operating cash use for the first nine months fell to $37.3 million from $101.2 million a year earlier. The company also exchanged $15 million of 2027 notes for shares, reducing debt but diluting shareholders.
• Results included a $57.1 million non-cash asset impairment and a $20.8 million accelerated-rent charge tied to a partial lease termination. Management expects restructuring and footprint reductions to support future savings, but said operating expenses still need to come down substantially.
• International retail revenue grew 13.3% for a third consecutive quarter, led by Europe. Beyond also cited early traction for Beyond Steak Filet and growth in its Immerse beverage line, though it said the adjacent-category numbers remain small.

Beyond Meat Trading Down 1.7%

Shares of NASDAQ:BYND traded down $0.12 during trading on Wednesday, hitting $7.15. The stock had a trading volume of 1,984,329 shares, compared to its average volume of 960,490. Beyond Meat has a 12-month low of $6.49 and a 12-month high of $46.80. The company has a current ratio of 2.63, a quick ratio of 2.07 and a debt-to-equity ratio of 6.57. The stock has a 50-day simple moving average of $9.16 and a two-hundred day simple moving average of $18.39.

Wall Street Analysts Forecast Growth

BYND has been the topic of a number of recent analyst reports. Weiss Ratings restated a "sell (d)" rating on shares of Beyond Meat in a research note on Friday, October 2nd. Barclays reiterated an "underweight" rating and set a $10.00 price objective (up from $0.50) on shares of Beyond Meat in a research note on Monday, August 17th. Finally, Wall Street Zen raised shares of Beyond Meat from a "strong sell" rating to a "sell" rating in a report on Sunday, September 13th. Two research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Strong Sell" and an average price target of $23.33.

About Beyond Meat

Beyond Meat, Inc develops, manufactures and markets plant-based meat products designed to replicate the taste, texture and nutritional characteristics of animal-based meat. Its product portfolio has included plant-based beef, chicken and sausage alternatives, such as burgers, ground meat, breakfast sausage and breaded chicken products.

The company sells its products through grocery and retail outlets, restaurants, foodservice distributors and other commercial channels. Beyond Meat has served customers in the United States and international markets, with products available in various countries across North America, Europe and Asia-Pacific through retail and foodservice partnerships.

Founded in 2009 by Ethan Brown, Beyond Meat is headquartered in El Segundo, California.

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