Alternative meat maker Beyond Meat’s (BYND) shares slumped last week on the company’s earnings miss for the third quarter. BYND has lost 11.3% in price over the past five days. And although the company expects to deliver long-term growth, its fourth-quarter guidance was below expectations. So, given that BYND is currently still trading at a lofty valuation, the question is, is the stock worth buying on its current dip? Read on.Beyond Meat, Inc. (NASDAQ:BYND) is a plant-based meat products provider in the United States and internationally. The El Segundo, Calif.-based company’s shares declined after the company reported disappointing third-quarter results and issued fourth-quarter guidance that was below estimates on November 11. The stock slumped 19% during the session and closed 13% lower. Over the past five days, BYND has lost 11.3% in price to close yesterday’s trading session at $83.48. The stock has declined 32.9% year-to-date. Furthermore, BYND is trading well below its 50-day and 200-day moving averages.
The maker of faux meat is currently grappling with supply chain disruptions and labor shortages. The company pointed to low overall demand as a reason for its U.S. net revenues decline. And Beyond Meat President and CEO Ethan Brown expects “continued uncertainty for the balance of this year.” The company cut its third-quarter revenue forecast last month. Following the company’s third-quarter earnings release, JPMorgan (NYSE:JPM) analyst Ken Goldman slashed the stock’s price target to $54, keeping an underweight rating, while Bernstein analyst Alexia Howard downgraded the stock to market perform from outperform.
Ongoing operational challenges related to labor issues and uncertainty regarding COVID-19’s impact on demand levels are expected to affect the company’s revenues in the fourth quarter. And BYND expects to generate revenue in a range of $85 million to $110 million, which is lower than analysts’ expectations.