Investing.com -- Beyond Meat surged in premarket U.S. trading Wednesday after the plant-based meat producer reported better-than-expected fourth-quarter revenue and touted an anticipated acceleration in margins in the second half of 2024.
Los Angeles-based Beyond Meat (NASDAQ:BYND) is carrying out a sweeping review of its operations in a bid to slash costs during a time of muted demand from inflation-squeezed customers for its pricier offerings. In November, the company slashed its annual outlook and rolled out headcount reductions.
For the three months ended Dec. 31, the firm posted a 7.8% dip in revenues to $73.7 million, as increased discounts offset an uptick in product volumes. However, the figure still topped analyst estimates of $66.7M.
Meanwhile, Beyond Meat's net loss widened to $155.1 million, or $2.40 per share, due in part to non-cash charges related to the restructuring effort. Wall Street estimates had called for a loss of $0.89 a share. Gross margins fell to -113.8% in the fourth quarter, down from -3.7% in the year-ago period.
Full-year revenues were seen at approximately $315M to $345M. The group also said that gross margin is expected to improve in the second half relative to the opening six months of the year.
"After a prolonged period of volatility, [Beyond Meat] is on more stable footing. Positive gross profit and steep cost cuts create breathing room, although category trends are still under pressure," analysts at Jefferies said in a note to clients.
Yasin Ebrahim contributed to this report.