Beyond Meat Shares Down 13% After Downgrading Third Quarter Revenue Forecast

Beyond Meat Beyond Burger Patties, made from plant-based meat substitutes, are up for sale on November 15, 2019 in New York.

Angela Weiss | AFP | Getty Images

Shares of Beyond Meat fell more than 13% in Friday morning trading after the company warned that it expects to report lower third-quarter revenue than previously forecast.

Beyond said it expects net sales of $ 106 million, below its previous forecast of $ 120-140 million. Wall Street analysts surveyed by Refinitiv expected revenue for the quarter to be $ 133.1 million. The company did not release its quarterly earnings forecast, but analysts were expecting a loss of 29 cents per share ahead of Friday’s announcement.

The company said the sales lag was due to a variety of factors, including the impact of the delta variant of Covid-19. Beyond said the Canadian distributor was cutting retail orders longer than expected as its restaurants reopened and expected additional orders that did not materialize after one of its major customers changed distributor. The company said labor shortages also likely delayed distribution expansion and shelf reloads.

Operational problems also hurt his results. A Pennsylvania facility lost potable water for two weeks, and another facility suffered damage to inventory due to water spillage due to harsh weather, Beyond said.

Beyond did have one bright spot for sales during the quarter: an international customer sped up orders. The company does not disclose the name of the customer.

Beyond’s initial third-quarter revenue forecast disappointed investors when the company released it in early August. After a sharp rise in grocery store sales last year, demand fell during quarantine. At the same time, catering orders have not yet fully recovered, even though restaurants are operating at full capacity. Executives said last quarter that many eateries were more conservative in their orders because they were unsure about the business impact of the delta option.

Beyond is expected to release full third quarter results following the November 10 announcement.

The stock is down 13% this year, bringing its market value to $ 6.87 billion.

Source link

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button