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Beyond Meat (BYND) Queued for Q1 Earnings: Factors to Note

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Beyond Meat, Inc. (BYND - Free Report) is likely to witness year-over-year growth in the top line, when it reports first-quarter 2021 numbers on May 6. The Zacks Consensus Estimate for revenues is pegged at $114 million, which suggests growth of 17.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate has deteriorated in the past 30 days from a loss of 25 cents per share to a loss of 27 cents per share. This indicates a sharp decline from earnings of 3 cents reported in the year-ago quarter. Notably, this manufacturer, seller and marketer of plant-based meat products has underperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters, on average.

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

Key Factors to Note

Beyond Meat has been struggling with a weak foodservice business for a while. The company’s foodservice channel has been adversely impacted by sluggish food-away-from-home trends amid the coronavirus pandemic. This was evident in fourth-quarter 2020, wherein sales from this channel declined 42.6% and 62.9% in the U.S. and International regions, respectively. In fact, lower foodservice volumes also weighed on the gross margin, indicating a reduced fixed-cost absorption. Also, high COVID-19 costs are a concern.

On its last earnings call, management commented that the company continues to battle a considerably lower foodservice demand on account of soft foot traffic, curbs on operating capacity and streamlined menus. Also, the pandemic-led high retail demand stemming from elevated at-home consumption has moderated. Nonetheless, solid product offerings and a focus on expanding the distribution channel by teaming up with renowned retail giants have been working well for Beyond Meat, given consumers’ growing preference for plant-based meat products. In the last reported quarter, the company’s U.S. retail business gained on solid consumer takeaway across measured as well as non-measured channels.

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. But that’s not the case here. 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 +20.76%.

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.

Tyson Foods ((TSN - Free Report) ) currently has an Earnings ESP of +16.03% 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 +0.73% and a Zacks Rank #3, currently.

Monster Beverage Corporation (MNST - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #3, at present.

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