June 18, 2024

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Beyond Meat Reports Huge Loss, Guides Low, But Stock Skyrockets On ‘Right-Sizing’ Hopes

2 min read

Beyond Meat (BYND) reported a big fourth-quarter loss late Tuesday. Revenue fell less than expected, though the fake-meat maker guided low on sales. Still, BYND stock skyrocketed overnight as the company announced plans to cut operating costs and other “right-sizing” moves.




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Beyond Meat Earnings

Beyond Meat lost $2.40 a share, though that might not be comparable to FactSet estimates for an 89-cent loss. The Q4 loss included various noncash charges. Revenue fell 8% to $73.68 million, topping views for $66.7 billion.

The company sees first-quarter revenue of $70 million to $75 million, well below consensus for $89 million. The company expects 2024 sales of $315 million to $345 million, largely below analysts’ target of $344.4 million.

But the company said it plans major changes to improve operations and the product.

“Our 2024 plan includes taking steps to steeply reduce operating expense and cash use; pricing actions and the right-sizing of our production footprint, both in support of margin expansion,” CEO Ethan Brown said in the earnings release. He also sees a “years-in-the-making core platform renovation … that delivers superior health benefits and taste.”

Beyond Meat Stock

Beyond Meat stock spiked 73.5% in late trading, signaling a move above its 50-day and 200-day moving averages. BYND stock edged up 0.9% to 7.52 in Tuesday’s session. Shares hit a record low of 5.58 last October.

While beaten-down money-losing stocks that are heavily shorted can see massive moves to the upside, the risks are high that they will continue to fall. Targeting stocks with strong fundamentals and positive share price performance is a better investing strategy over time.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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2024-02-27 20:11:20

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