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Beyond Meat (BYND) Q3 Loss Wider Than Expected, Revenues Down
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Beyond Meat, Inc. (BYND - Free Report) posted soft third-quarter 2022 results as the top and bottom lines missed the Zacks Consensus Estimate and deteriorated year over year. The company posted a net loss of $1.60 per share compared with the Zacks Consensus Estimate of a loss of $1.09. BYND posted a loss of 87 cents per share in the year-ago period.
Net revenues of $82.5 million decreased 22.5% year over year and missed the Zacks Consensus Estimate of $91 million. This was a result of a nearly 11.2% drop in net revenues per pound and a 12.8% decline in total pounds sold. Management stated that all channels and markets were hurt by softer-than-anticipated demand in the category, and various customer and distributor changes.
U.S. net revenues dropped 8.9% to $62.2 million, with retail revenues declining 11.8% to $46.2 million and foodservice revenues growing 5.6% to roughly $16 million. International net revenues slumped 47.8% to $20.3 million, wherein retail revenues tumbled 52.3% to nearly $11 million and foodservice revenues plunged 42.2% to $10.1 million.
Beyond Meat, Inc. Price, Consensus and EPS Surprise
U.S. retail channel net revenues tumbled due to a decline in pounds sold. Meanwhile, net revenues per pound remained flat year over year.
U.S. foodservice channel revenues increased due to a rise in pounds sold, partly negated by reduced net revenues per pound. International retail channel revenues and international foodservice channel revenues were hurt by a decline in pounds sold and lower net revenues per pound.
The gross profit was a loss of $14.8 million against a profit of $23 million in the year-ago period. The gross margin in the third quarter was affected by escalated costs per pound and reduced net revenues per pound. The rise in the cost per pound was mainly due to elevated manufacturing costs per pound and a spike in materials and logistics costs per pound.
Other Financial Updates
Beyond Meat concluded the quarter with cash and cash equivalents of $390.2 million, total outstanding debt of $1.1 billion and total shareholders’ deficit of about $142 million.
In the nine months ended Oct 1, 2022, the company used net cash from operating activities of $270.3 million, while capital expenditures for the period totaled $60 million. Management expects to generate positive cash flow from operations in the second half of 2022.
Outlook
On its third-quarter 2022 earnings call, management stated that the operating landscape remains impacted by near-term volatility associated with macroeconomic factors. These include inflation and rising interest rates, concerns surrounding a recession, the impact of the pandemic on consumer behavior and demand and headwinds related to labor availability and supply-chain bottlenecks.
Based on these factors, management projects net revenues in the range of $400-$425 million for 2022. This suggests a decline of 14-9% from the 2021 level.
Shares of this Zacks Rank #3 (Hold) company have declined 67.8% in the past three months compared with the industry’s decline of 12.2%.
Lamb Weston, a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 14.6% and 45.7%, respectively, from the year-ago reported numbers.
The J.M. Smucker, which manufactures and markets branded food and beverage products, sports a Zacks Rank #1 at present. The J.M. Smucker has a trailing four-quarter earnings surprise of 20.8%, on average.
The Zacks Consensus Estimate for SJM’s current financial-year sales suggests growth of 4.6% from the year-ago reported number.
Conagra Brands, which operates as a consumer-packaged goods food company, currently carries a Zacks Rank of 2 (Buy). CAG has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current financial-year sales and EPS suggests growth of 5.2% and around 3%, respectively, from the corresponding year-ago reported figures.
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Beyond Meat (BYND) Q3 Loss Wider Than Expected, Revenues Down
Beyond Meat, Inc. (BYND - Free Report) posted soft third-quarter 2022 results as the top and bottom lines missed the Zacks Consensus Estimate and deteriorated year over year. The company posted a net loss of $1.60 per share compared with the Zacks Consensus Estimate of a loss of $1.09. BYND posted a loss of 87 cents per share in the year-ago period.
Net revenues of $82.5 million decreased 22.5% year over year and missed the Zacks Consensus Estimate of $91 million. This was a result of a nearly 11.2% drop in net revenues per pound and a 12.8% decline in total pounds sold. Management stated that all channels and markets were hurt by softer-than-anticipated demand in the category, and various customer and distributor changes.
U.S. net revenues dropped 8.9% to $62.2 million, with retail revenues declining 11.8% to $46.2 million and foodservice revenues growing 5.6% to roughly $16 million. International net revenues slumped 47.8% to $20.3 million, wherein retail revenues tumbled 52.3% to nearly $11 million and foodservice revenues plunged 42.2% to $10.1 million.
Beyond Meat, Inc. Price, Consensus and EPS Surprise
Beyond Meat, Inc. price-consensus-eps-surprise-chart | Beyond Meat, Inc. Quote
U.S. retail channel net revenues tumbled due to a decline in pounds sold. Meanwhile, net revenues per pound remained flat year over year.
U.S. foodservice channel revenues increased due to a rise in pounds sold, partly negated by reduced net revenues per pound. International retail channel revenues and international foodservice channel revenues were hurt by a decline in pounds sold and lower net revenues per pound.
The gross profit was a loss of $14.8 million against a profit of $23 million in the year-ago period. The gross margin in the third quarter was affected by escalated costs per pound and reduced net revenues per pound. The rise in the cost per pound was mainly due to elevated manufacturing costs per pound and a spike in materials and logistics costs per pound.
Other Financial Updates
Beyond Meat concluded the quarter with cash and cash equivalents of $390.2 million, total outstanding debt of $1.1 billion and total shareholders’ deficit of about $142 million.
In the nine months ended Oct 1, 2022, the company used net cash from operating activities of $270.3 million, while capital expenditures for the period totaled $60 million. Management expects to generate positive cash flow from operations in the second half of 2022.
Outlook
On its third-quarter 2022 earnings call, management stated that the operating landscape remains impacted by near-term volatility associated with macroeconomic factors. These include inflation and rising interest rates, concerns surrounding a recession, the impact of the pandemic on consumer behavior and demand and headwinds related to labor availability and supply-chain bottlenecks.
Based on these factors, management projects net revenues in the range of $400-$425 million for 2022. This suggests a decline of 14-9% from the 2021 level.
Shares of this Zacks Rank #3 (Hold) company have declined 67.8% in the past three months compared with the industry’s decline of 12.2%.
Looking for Consumer Staple Stocks? Check These
Some better-ranked stocks from the sector are Lamb Weston (LW - Free Report) , The J.M. Smucker (SJM - Free Report) and Conagra Brands (CAG - Free Report) .
Lamb Weston, a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 14.6% and 45.7%, respectively, from the year-ago reported numbers.
The J.M. Smucker, which manufactures and markets branded food and beverage products, sports a Zacks Rank #1 at present. The J.M. Smucker has a trailing four-quarter earnings surprise of 20.8%, on average.
The Zacks Consensus Estimate for SJM’s current financial-year sales suggests growth of 4.6% from the year-ago reported number.
Conagra Brands, which operates as a consumer-packaged goods food company, currently carries a Zacks Rank of 2 (Buy). CAG has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current financial-year sales and EPS suggests growth of 5.2% and around 3%, respectively, from the corresponding year-ago reported figures.