By Sam Boughedda
Struggling plant-based meat company Beyond Meat (NASDAQ:BYND) traded lower in the immediate aftermath of its earnings release after the close Wednesday, which came in below analyst consensus estimates.
The company revealed that in the third quarter, it made a loss per share of $1.60, $0.47 worse than the analyst estimate of a loss per share of $1.13. In addition, revenue for the quarter came in at $82.5 million versus the consensus estimate of $114.27M.
Net revenues decreased 22.5% compared to $106.4M in the year-ago period. The company put the decrease down to a 12.8% decline in total pounds sold and an approximately 11.2% reduction in net revenue per pound.
"All markets and channels were negatively impacted by a combination of weaker than expected demand in the category and certain customer and distributor changes such as reductions in targeted inventory levels, among other factors," Beyond Meat said in its release.
The company's shares are currently up 1.5% after initially tumbling 6.9% following the release. In the regular session, Beyond Meat shares fell over 9% to $11.82 per share.
"As we shared last month, Beyond Meat is executing a full-force pivot to a sustainable growth model, emphasizing the achievement of cash flow positive operations within the second half of 2023," said Beyond Meat President and CEO Ethan Brown.
He added that the transition is designed to fortify the business in the near term as "record inflation continues to pose a challenge" for the Beyond Meat brand and category.
Looking ahead, the company expects FY2022 revenue of $400-425M, down approximately 14% to 9% compared to 2021 and below the consensus of $453.4M.