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Factors to Know Ahead of Beyond Meat's (BYND) Q4 Earnings

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Beyond Meat, Inc. (BYND - Free Report) , which is expected to come out with fourth-quarter 2019 results has been focused on undertaking initiatives to strengthen consumer base and expand operations in the United States as well as internationally. These efforts have been driving the company’s performance and expanding its market share.

Notably, Beyond Meat delivered a positive earnings surprise of 20% in the last reported quarter. Further, this California-based food company’s earnings have outperformed the Zacks Consensus Estimate by 44.2%, on average, in the trailing three quarters.

Beyond Meat, Inc. Price and EPS Surprise


Beyond Meat, Inc. Price and EPS Surprise

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

Factors to Consider

Encouraged by healthy demand, Beyond Meat has been benefitting from its focus on product innovation for non- genetically modified organisms (GMO) and simple plant-based items. Moreover, Beyond Meat has been making investments to augment its marketing activities. These initiatives have been aiding the company’s portfolio.

In its last earnings call, management guided for full year 2019 sales in the range of $265-$275 million.

This apart, Beyond Meat has been undertaking certain initiatives to enhance its operational efficiency. In fact, better supply-chain logistics along with lower packaging and material input costs, tolling fee efficiencies, reduced distribution costs and favorable volume are likely to have boosted the company’s gross profit in 2019. Further, the company anticipates adjusted EBITDA of roughly $20 million in the same time frame.

 Which Way Are Estimates Headed?

The Zacks Consensus Estimate for fourth-quarter earnings is at breakeven. The consensus estimate has remained unchanged over the last 30 days. The consensus mark for revenues stands at $75.9 million for the quarter under review.

Also, Zacks Consensus estimate is pegged at a loss of 20 cents for 2019. The consensus mark for sales for the full year is pegged at $275.3 million.

What the Zacks Model Unveils?

Our proven model does not 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.

Although Beyond Meat carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

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:

Darling Ingredients (DAR - Free Report) presently has an Earnings ESP of +6.38% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hostess Brands, Inc. (TWNK - Free Report) presently has an Earnings ESP of +4.62% and a Zacks Rank #1.

Procter & Gamble (PG - Free Report) currently has an Earnings ESP of +2.19% and a Zacks Rank #2.

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