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Beyond Meat (BYND) to Report Q4 Earnings: Key Things to Note

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Beyond Meat, Inc. (BYND - Free Report) is likely to witness growth in the top line when it reports fourth-quarter 2020 numbers on Feb 25. The Zacks Consensus Estimate for revenues is pegged at $104 million, suggesting an increase of 6.1% from the prior-year quarter’s reported figure.

However, the bottom line is likely to register a decline year over year. The Zacks Consensus Estimate is pegged at a loss of 14 cents per share, which has remained stable over the past 30 days. However, this indicates a significant decline from a loss of 1 cent reported in the prior-year period. This manufacturer, marketer and seller of plant-based meat products has a significantly high trailing four-quarter negative earnings surprise, on average.

Key Factors to Note

Beyond Meat has been bearing the brunt of continued sluggishness in its foodservice business due to the pandemic. This is accountable to increased stay-at-home mandates and curbs on operating capacity, which have resulted in closures or considerably reduced operations for many foodservice customers. In the last reported quarter, the company’s foodservice net revenues slumped 41% with non-quick-serve restaurant (or QSR) locations bearing worse impacts than the big chain QSR customers. Incidentally, a number of the company’s customers among independent restaurants, bars and pubs, movie theatres, and lodging, to name a few, have been witnessing slow recovery rates. The resurgence in cases, both internationally and domestically, further affected recovery in these locations.

Beyond Meat, Inc. Price, Consensus and EPS Surprise

Beyond Meat, Inc. Price, Consensus and EPS Surprise

Beyond Meat, Inc. price-consensus-eps-surprise-chart | Beyond Meat, Inc. Quote

Apart from these, the increased demand in the retail channel stemming from higher at-home consumption has moderated due to reduced panic-buying trends in general. Nonetheless, solid product offerings and a focus on expanding the distribution channel by teaming up with several renowned retail giants have been working well for Beyond Meat, given consumers’ rising demand for plant-based offerings. When it comes to bolstering product offerings, we note that the company has been on track with innovation. Last year, the company rolled out several new products, such as Beyond Breakfast Sausage Links, Beyond Meatballs, Cookout Classic and Beyond Breakfast Sausage. That being said, high COVID-19 costs have been a concern.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Beyond Meat this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Beyond Meat currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

The J.M. Smucker (SJM - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nomad Foods (NOMD - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3.

Purple Innovation (PRPL - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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