Beyond Meat Plunges 18.6% as Q3 Results Disappoint


Plant-based meat producer Beyond Meat, Inc. (BYND) has reported weaker-than-expected results for the third quarter ended October 2, 2021, as both revenue and earnings failed to surpass estimates.

Following the release, shares of the company tanked 18.6% to close at $76.90 in the extended trade.

Revenue & Earnings

Beyond Meat reported quarterly net revenues of $106.4 million, up 12.7% year-over-year. This was primarily due to a significant rise witnessed in International net revenues, which grew from $16 million in the previous year to $38.9 million. However, U.S. net revenues dented the overall growth in net revenues by declining 13.9% year-over-year. The overall revenue figure failed to surpass the consensus estimate of $109.2 million.

The company posted a loss per share for the quarter of $0.87, wider than the loss of $0.31 reported in the previous year. The figure also came in wider than the consensus estimate of $0.39.

Other Operating Metrics

In other operating metrics, BYND’s adjusted EBITDA at the end of the quarter stood at a loss of $36.8 million, wider than the loss of $4.3 million in the year-ago period.

Outlook

For the forthcoming quarter, the company expects revenue to be in the range of $85 million to $110 million against the consensus estimate of $131.6 million.

Management Commentary

The CEO of Beyond Meat, Ethan Brown, said, “Our third quarter results reflect variability as we saw a decline from record net revenues just a quarter ago. Despite current disruptions, we remain focused on rapidly advancing key building blocks of long-term growth. Whether scaling products and infrastructure for our strategic quick serve restaurant partners, bringing new product to retail markets, or investing in innovation, commercialization, and production capabilities here in the U.S., EU, and China, we believe we are steadily executing against our vision of being tomorrow’s global protein company.”

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Price Target

On November 10, Jefferies analyst Robert Dickerson reiterated a Hold rating on the stock with a price target of $120, which implies upside potential of 27% from current levels.

Consensus among analysts is a Moderate Sell based on 1 Buy, 5 Holds and 5 Sells. The average Beyond Meat price target of $97.89 implies upside potential of 3.6% from current levels. Shares have declined 26.1% over the past year.

TipRanks Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Beyond Meat’s performance this quarter.

According to the tool, the Beyond Meat website recorded a 35.15% monthly fall in global visits in October. Further, year-to-date, website traffic declined 20.56%.

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