Vegetable protein company Beyond meat (BYND) beat expectations for fourth-quarter results as of Friday morning. Beyond Meat shares surged higher following the results.
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Beyond the meat yield
The El Segundo, Calif.-based company reported a lower-than-expected loss for the fourth quarter as sales fell for the third straight quarter. Beyond Meat reported a loss of $1.05 per share, up from a loss of $1.27 per share a year ago. Revenue fell 20.6% to $79.9 million. Revenue has declined nearly 15% on average over the past three quarters.
Still, the results came in better than analysts’ forecasts of a loss of $1.18 per share on revenue of $75.8 million.
In the earnings call, CEO and Founder Ethan Brown said the fourth quarter ended a “challenging year for our business and category, one marked by persistently high inflation and consumer trading of proteins, a slowing economy in key markets and increased competitive activity.”
Beyond Meat saw a 16.9% decline in product pounds sold and a 4.4% decline in net sales per pound. The company’s U.S. retail sales fell 17.1% on the back of a 22.5% drop in pounds sold.
For fiscal 2023, Beyond Meat expects sales to be between $375 million and $415 million, down 1% to 10% from 2023. It expects low double-digit gross margins to increase sequentially throughout the year. And Beyond Meat expects to be cash flow positive within the second half of 2023.
BYND stock
Shares of Beyond Meat rose more than 10% to 18.88 on Friday after rising nearly 19% following earnings results. Following Friday’s gains, BYND stock is up 2% over the past month and nearly 53.4% year-to-date. Shares closed nearly 9% below the stock’s 200-day moving average on Friday.
Bernstein increased his price target on Beyond Meat shares to 18 from 10 while maintaining a Market Performance rating. Analyst Alexia Howard called the results “another cautiously more positive quarter, although the company is far from over the hill.”
Mizuho raised his goal from 11 to 20. The stock’s rating has been kept at neutral, but plans for fiscal 2023 include a change in strategy better suited to laying a foundation for multi-year revenue growth, the release said.
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