Beyond Meat Stock To Trade Lower After Q2?


Beyond Meat Broth (NASDAQ
: BYND), a plant-based meat alternative company, is expected to release its second quarter results on Thursday, Aug. 4. We expect BYND shares to trade lower as revenues and gains in the second quarter results fall short of expectations. Falling nearly 50% from $65 to $33 this year, the decline in BYND’s stock price is one of the reasons many investors are betting against this company as it saw disappointing results in the first quarter. Things went from bad to worse, as the 0.2% gross profit margin was much worse than the 30.2% recorded in the previous year’s quarter. In addition, a lack of earnings expectations worries some investors that more suffering lies ahead for earnings in the coming second quarter.

The company is targeting full-year revenue in the range of $560 million to $620 million, which would represent 27% growth in the middle of its forecast. On the upside, management maintained its full-year forecast, suggesting the pressure could be short-lived.

Our forecast indicates BYND’s valuation is $25 per share, which is 26% lower than the current market price. View our interactive dashboard analysis on Outlook on meat revenues: What to expect in fiscal Q2? for more details.

(1) Revenue expected to be slightly below consensus estimates

Trefis estimates BYND’s second quarter 2022 revenue to be approximately $148 million, slightly below the consensus estimate. More than meat
reported revenue of $109.5 million, up just 1.2% year-over-year (yoy). It should be noted that BYND’s overall product volume increased 12.4%, but this was offset by a 10% decline in the price per pound during the first quarter.

(2) EPS probably also misses consensus estimates

BYND’s second quarter 2022 earnings per share are expected to come in at a loss of $1.30 per Trefis analysis, which lacks the consensus estimate. The plant-based meat company appears to be continuing its growth spending. Operating expenses were up a massive 70% to nearly $98 million, largely due to a major jump in SG&A spending. As a result, the company’s net loss rose to $100.5 million or $1.58 per share from a loss of $27.3 million or $0.43 per share in the same quarter a year ago. It should be noted that the company reported $548 million in cash at the end of the first quarter of 2022, so it can afford a few more quarters like this.

(3) Estimate of the stock price much lower than the current market price

along our Beyond the appreciation of meatwith estimated revenue per share of approximately $9.00 and a P/S multiple of 2.8x in fiscal 2022, this translates to a price of $25, which is nearly 26% lower than the current market price.

It’s helpful to see how his peers are doing. BYND Peers shows how Beyond Meat’s stock compares to other companies in terms of metrics that matter. Other useful comparisons for companies in different sectors can be found at Peer Comparisons.

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