Past meat stock spikes as the loss narrows, analysts are becoming cautiously optimistic

Plant-based protein company Beyond meat (BYND) beat expectations for fourth-quarter results on Friday morning. Beyond Meat shares shot higher after the results.


Beyond meat income

The El Segundo, California-based company reported a smaller-than-expected fourth-quarter loss 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. Sales fell 20.6% to $79.9 million. Turnover has fallen by an average of almost 15% over the past three quarters.

Still, the results beat 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 as a “challenging year for our business and our category, one marked by continued high inflation and consumer protein trading, slowing economics in key markets and increased competitive activity. .”

Beyond Meat saw a 16.9% drop in total pounds of product sold and a 4.4% drop in net sales per pound. The company’s US retail sales fell 17.1%, driven by a 22.5% drop in pounds sold.

For fiscal 2023, Beyond Meat expects sales to be between $375 million and $415 million, representing a 1% to 10% decline from 2023. It expects low double-digit gross margins to grow sequentially throughout the year. And Beyond Meat expects to have positive cash flow in the second half of 2023.

BYND stock

Beyond Meat shares rose more than 10% to 18.88 on Friday, after peaking nearly 19% after earnings results. Following Friday’s gains, BYND shares are up 2% over the past month, up nearly 53.4% ​​since the start of the year. Shares closed just about 9% below the stock’s 200-day moving average on Friday.

Bernstein raised his price target on Beyond Meat shares from 10 to 18 and maintained a market performance rating. Analyst Alexia Howard called the results “another cautiously more positive quarter, although the company is far from out of the woods.”

Mizuho raised its target from 11 to 20. It kept the stock’s rating at neutral, but its 2023 fiscal plans include a strategy inflection that is better placed to lay foundations for multi-year revenue growth, the note said. .

You can follow Harrison Miller for more stock market news and updates on Twitter @IBD_Harrison


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