Beyond Meat Inc.’s stock is being grilled after the maker of plant-based meats announced a precipitous drop in revenue and reduced its full-year 2023 net revenue forecast.
On Monday, Beyond Meat
BYND,
-2.92%
shares dove 12% in extended trading following quarterly results that showed signs of life following a prolonged narrative of rough times for the industry.
Beyond Meat reported a fiscal second-quarter net loss of $53.5 million, or 83 cents a share, compared with a net loss of $97.1 million, or $1.53 a share, in the year-ago quarter.
Net revenue plunged 30% to $102.1 million from $147 million a year ago.
Analysts surveyed by FactSet had expected on average a net loss of 84 cents a share on revenue of $108.7 million.
“The second quarter brought mixed results amidst otherwise strong progress toward our goal of sustainable long-term growth. Ongoing category headwinds compressed net revenues, which in turn impacted product sales mix and gross margin, overshadowing significant strides in operational efficiency, including meaningful year-over-year reductions in operating expenses, [cost of goods sold] per pound, and overall cash consumption,” Beyond Meat Chief Executive Ethan Brown said in a statement.
“We nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin,” Brown added.
Beyond Meat offered a full-year revenue guidance range of $360 million to $380 million. Analysts polled by FactSet have forecast $387.1 million.
Shares of Beyond Meat have gained 24% so far this year, while the S&P 500
SPX
has increased 18%.
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