Beyond Meat Q3 earnings misses estimates

Beyond Meat is a Los-Angeles based plant-based meat substitute producer. It released its third quarter earnings on November 10, 2021 after the closing bell. Here is an overview of the latest disclosure.

  • Revenue: $106.4 million vs $106.13 expected
  • EPS: $-0.87 adjusted vs $-0.41 expected
  • Net Loss: $54.8 million

Financial Highlights

  • Net revenues were $106.4 million, an increase of 12.7% year-over-year.
  • Gross profit was $23.0 million, or gross margin of 21.6% of net revenues.
  • Net loss was $54.8 million, or $0.87 per common share. Net loss as a percentage of net revenues was -51.5%.
  • Adjusted EBITDA was a loss of $36.8 million, or -34.5% of net revenues.

CEO’s Statement

“Our third quarter results reflect variability as we saw a decline from record net revenues just a quarter ago. Despite current disruptions, we remain focused on rapidly advancing key building blocks of long-term growth. Whether scaling products and infrastructure for our strategic quick serve restaurant partners, bringing new product to retail markets, or investing in innovation, commercialization, and production capabilities here in the U.S., EU, and China, we believe we are steadily executing against our vision of being tomorrow’s global protein company.”

– said Beyond Meat President and CEO Ethan Brown

Analysts Estimate

The Zacks’ Consensus Estimate for loss per share was pinned $0.31. Though the estimated figure was negative, it indicated an increase of 24.4% quarter-over-quarter. However, it suggested a decline of 46.4% year-over-year.

The Earnings Expected Surprise Prediction was pegged at -5.19% which indicated that the consensus didn’t expect Beyond meat to meet its estimates.

The estimated revenue was pinned at $106.13 million. This indicated a modest increase of 12.38% year-over-year.

Earnings History

Beyond meat’s second quarter earnings (loss) for FY21 missed the estimates. The estimated loss per share was $0.27. However, it reported a loss of $0.31. Hence, missed the estimates by 14.81%. In contrast, it beat the revenue estimates. The reported revenue was $149.4 million against an estimate of $140.2 million. The revenue increased by 32% year-over-year.

Key financial highlights for the second quarter included:

  • Net revenues were $149.4 million, an increase of 31.8% year-over-year.
  • Gross profit was $47.4 million, or gross margin of 31.7% of net revenues.
  • Net loss was $19.7 million or $0.31 per common share. Net loss as a percentage of net revenues was -13.2%.
  • Adjusted EBITDA was a loss of $2.2 million, or -1.5% of net revenues.

The first quarter results failed to comply with analysts estimates as well. It reported a loss of $0.42 per share against the analyst estimated loss per share of $0.21. Revenues increased by 11.4% year-over-year. However, it failed to meet the estimates. The reported revenue was $108.16 million falling short of analyst estimated revenue of $112.92 million.

Future Forecast

Analysts for the fourth quarter of FY21 estimate the loss per share to be $0.37. This indicates a decline of 8.82% year-over-year. The estimated revenue is pinned at $131.59 million. This suggests a modest growth of 29.1% from that of the previous year.

The Annual Forecast for FY21 estimates the loss per share to be $1.52. This indicates a huge decline of 153.3% year-over-year. The estimated revenue is pinned at $500.87 million. This suggests a modest growth of 23.13% from that of the last year.

Related Posts