Beyond Meat Inc (NASDAQ: BYND) stock tanked 25% in extended trading on Wednesday after the plant-based meat substitutes company reported weak results for its fiscal first quarter.
Notable figures in Beyond Meat Q1 results
Lost $1.58 a share in Q1 versus FactSet consensus of 97 cents.Generated $109.5 million in sales, missing forecast by $2.9 million.Costs in the first quarter were up 97% on a year-over-year basis.Gross margin stood at 30.2% representing a decline of 0.2%.Ended the recent financial quarter with $547.9 million in cash.
Commenting on the quarterly results, CEO Ethan Brown said in the earnings press release:
In Q1, we made good progress against our goal of building tomorrow’s global protein company. Whether furthering strategic partnerships in restaurant industry, market success of our first product collaboration with PepsiCo, or continued acclaim awarded to our products here in the U.S. and EU, we continue to lay a robust foundation for long-term growth.
Beyond Meat reiterated its future guidance
Despite weak results, Beyond Meat reiterated its full-year guidance for $560 million to $620 million in revenue that translates to a 21% to 33% annualised growth. Still, CFRA analyst Arun Sundaram says:
While we appreciate management’s long-term view, investors are going to be increasingly questioning BYND’s path to profitability, which isn’t good for the shares in a rising interest rate environment. Beyond Meat’s spending lifts the likelihood of a capital raise by the end of this year.
The stock is now down nearly 70% for the year.
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