Shares of Beyond Meat (NASDAQ:BYND) are down more than 25% in premarket trading Thursday after the company reported a wider-than-expected adjusted loss per share.
BYND reported a Q1 adjusted loss per share of $1.58, compared to a loss per share of 42c in the year-ago period and the estimated loss per share of 98c. Net revenue came in at $109.5 million, up 1.2% YoY and below the expected $112.2 million.
Adjusted EBITDA loss stood at $78.9 million, compared to a $10.8 million loss in the same period last year and the projected loss of $49.7 million. The U.S. net revenue totaled $83.8 million, up 4% YoY and topping the consensus estimates of $81.8 million.
BYND generated $15.5 million in U.S. Foodservice net revenue, down 7.5% YoY and missing the analyst consensus of $23.8 million. International net revenue totaled $25.7 million in the period, down 6.9% YoY and below the analyst expectations of $32.9 million.
For the full fiscal year, Beyond Meat expects net revenue in the range of $560 million to $620 million, while analysts were looking for $586.4 million.
Barclays analyst Benjamin Theurer downgraded shares to Equal Weight with a $25.00 per share price target, down from $80.00.
“Given limited short term visibility, mounting cost pressure, and high cash burn, we downgrade BYND to EW and lower our price target to $25. 1Q results were disappointing and 2Q guidance was less upbeat than our previous estimates. For 2H22 we see sales growth reaccelerating, but margins to remain well below historic levels,” the analyst said in a client note.
BofA analyst Peter Galbo also cut the price target to $20.00 per share from $45.00 on Underperform-rated shares.
“BYND expects incremental improvement in sales/margins over the remainder of FY22 with stronger improvement in 2H; however, we expect the stock to remain pressured until fundamentals improves,” Galbo told clients.
By Senad Karaahmetovic