Made from a plant-based alternative to Beyond Meat meat products, the Beyond Burger patties are on shelves for sale in New York City on November 15, 2019.
Angela Weiss | AFP | Getty Images
Share Beyond Meat Friday’s trading hit a 52-week low after the company warned that it expects third-quarter sales to be lower than previously forecast.
Beyond expects net sales of $ 106 million, below the previous $ 120 million forecast of $ 140 million. Wall Street analysts surveyed by Refinitiv predicted quarterly revenue of $ 133.1 million. The company didn’t announce its quarterly earnings outlook, but analysts expected a loss of 29 cents per share prior to Friday’s announcement.
Beyond shares have recently fallen nearly 14% after falling to $ 91.55. This year’s share price fell 25%, bringing in a market value of $ 5.9 billion.
The company said multiple factors caused sales delays, including the impact of the Covid-19 Delta variant. According to Beyond, Canadian distributors expected retail orders to decline longer than expected due to the reopening of restaurants, with orders not increasing after one of the larger customers changed distributors. The labor shortage also likely delayed the expansion of distribution and the reset of shelves, the company said.
Operational challenges also compromise the results. A facility in Pennsylvania lost drinking water for two weeks, and another facility was flooded with inventories after bad weather, Beyond said.
“In our view, BYND is specifically related to distinguishing between Covid-related issues and the impact of intensifying plant-based meat competition and / or weak consumer demand due to high prices, resulting in results. We are not fully aware of the underlying issues that affect our health, unfortunate taste, or health concerns, “CFRA analyst Arun Sundalam wrote in a note on Friday.
Beyond shared one bright spot in sales this quarter. That is, international customers have accelerated their orders. The company didn’t reveal the customer’s name.
Beyond initial forecasts for third-quarter earnings Disappointed investor When the company released it in early August. Demand fell after a surge in grocery sales during the blockade last year. At the same time, food service orders have not yet fully recovered, even though the restaurant is at full capacity.Executives said in the previous quarter: Many eateries were more conservative with respect to orders I wasn’t sure about the impact of the Delta variant on the business.
Beyond will report the full results for the third quarter after the bell on November 10.
Beyond Meat inventories fell to 52-week lows after lowering their earnings outlook for the third quarter.
Source link Beyond Meat inventories fell to 52-week lows after lowering their earnings outlook for the third quarter.