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Beyond Meat Slips on Slashed Forecast, BofA Sees 'Stretched' Valuation

Stock Markets Aug 05, 2022 09:52AM ET
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© Reuters Beyond Meat (BYND) Slips on Slashed Forecast, BofA Sees 'Stretched' Valuation

By Senad Karaahmetovic

Shares of Beyond Meat (NASDAQ:BYND) are down almost 5% after the producer of plant-based protein products cut its full-year revenue forecast.

Beyond Meat reported an adjusted loss per share of $1.53 on revenue of $147 million, which compares to the consensus of an adjusted loss of $1.19 on revenue of $149 million. Sales fell 1.6% on a year-over-year basis.

The company also reported $454.7 million in cash and cash equivalents, as of the end of Q2, which is a drop of 55% on YoY basis.

Beyond Meat cut its revenue outlook to now expect between $470 million and $520 million from the prior $560 million to $620 million. The new FY revenue projection is much worse than the consensus of $558.4 million.

The company also announced plans to cut 4% of its global workforce, which will save BYND approximately $8 million.

A Mizuho analyst said weaker sales were expected but he was positively surprised by cost controls.

“Numbers appear close to bottoming, but drivers of near-term revenue acceleration are lacking and, trading at 4.6x EV/our CY23E sales (15% premium vs. tech stocks median), valuation remains stretched for a name with uncertain structural growth potential. We prefer BRBR for investors seeking health-oriented growth stories,” he told clients in a note.

A BofA analyst slashed the price target by 50% to $10 to reflect lower estimates.

“BYND faces considerable headwinds going forward as a once high growth company that now faces a substantially lower growth rate over the medium to longer term, in our view, while contending with worsened profitability. Reiterate Underperform rating,” the analyst added.

 
Beyond Meat Slips on Slashed Forecast, BofA Sees 'Stretched' Valuation
 

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Comments (1)
Mitchel Pioneer
Mitchel Pioneer Aug 05, 2022 9:56AM ET
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Another miraculous intraday "recovery" under way.  Every single loss is mitigated by the close, while "rallies" run untethered to a closing high.  We can't have a loss on Friday, can we?  Another day of fraud and criminal manipulation in the laughingstock of the investing world.  Wash, rinse, repeat.  The US stock "market" is an absolute JOKE.
Jeff Bailey
JeffB Aug 05, 2022 9:56AM ET
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Bears need to pay themselves too.
 
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