Beyond Meat Earnings Preview: Dismal BYND Q3 forecast has investors keeping distance
- Wall Street is expecting a loss of $0.39 per share for BYND.
- Beyond Meat executives cut Q3 revenue expectations from an average of $130 million.
- BYND stock is down about 55% from its 2021 high.
Beyond Meat (BYND) stock is down 0.2% to $97.80 in Wednesday's premarket ahead of third-quarter earnings expected after the close. Poor analyst expectations and a management revenue revision appear to be the culprits.
Beyond Meat (BYND) Earnings Preview: QoQ revenue drop impresses no one
Wall Street consensus has the plant-based burger maker losing -$0.39 a share, which would amount to a 43% drop YoY. The 12% rise in YoY quarterly revenues at $106.1 million is also a far cry from the fast-paced sales growth the company's investors had grown accustomed to. For the full fiscal years of 2019 and 2020, revenues grew nearly 37%.
The coming earnings release is also a drop-off from the previous quarter when Beyond Meat reported a loss of -$0.31 a share on revenue of $149.4 million.
BYND stock has received 8 downward revisions and 2 upward revision to its full-year earnings forecast in the past 90 days.
BYND has a current market capitalization of $6.2 billion, which seems low now that its primary competitor, Impossible Food, is in talks to $500 million at a post-valuation of $7 billion.
Beyond Meat told investors several weeks ago not to expect the earlier forecast of revenue between $120 and $140 million for the third quarter, which caused the latest ongoing sell-off.
| Market Cap | $6.2 billion |
| Price/Earnings | 600 |
| Price/Sales | 13.8 |
| Price/Book | 24.7 |
| Enterprise Value | $6.4 billion |
| Operating Margin | -15.8% |
| Profit Margin |
-20.1% |
| 52-week high | $221 |
| 52-week low | $91.55 |
| Short Interest | 27% |
| Average Wall Street Rating and Price Target | Hold $94.31 |
Beyond Meat (BYND) Stock Chart Analysis: Q3 results will determine the next trajectory
BYND stock has been falling for months ever since it reached an all-time high of $221 reached in late January of this year. Another swing high in July quickly gave up, and now BYND has a one-year chart that looks particularly rough. The stock is down about 55% from its all-time high in January.
Beyond Meat shares have been swimming in a descending price channel for most of the year. As of now on the weekly chart, BYND price is quite close to the bottom. A break below $90.84, the bottom of the descending price channel, would signal that there is more pain to come. Short interest of 27% of shares outstanding and 32% of the float is worrisome.
Long-term support sits all the way down at $75 from the end of 2019. Otherwise, A true sell-off could take BYND shares as low as $58, where Beyond Meat stock price found support in March of 2020.
Many traders may look at the same chart and wonder what a positive earnings turn could do for BYND price. The first target should be the $103.49 level where the 9-day Exponential Moving Average (EMA) currently provides resistance. Triumphing over this barrier would give bulls the chance to attack the 21-day EMA at $12.89. Besting that challenge would give bulls free rein to run up to the top of the price channel at $139.84.
BYND weekly chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
