Plant-based protein company Beyond Meat topped expectations for its fourth quarter results Friday morning. Beyond Meat stock bolted higher following the results.
Beyond Meat Earnings
The El Segundo, Calif.-based company reported a narrower-than-expected loss for Q4 as sales fell for the third quarter in a row. Beyond Meat reported a loss of $1.05 per share, improving from a loss of $1.27 per share a year ago. Revenue dropped 20.6% to $79.9 million. Sales averaged nearly a 15% decline over the past three quarters.
Still, the results fared better than analyst forecasts of a $1.18 per share loss on $75.8 million in sales.
In the earnings call, CEO and founder Ethan Brown said the fourth quarter ended a, "challenging year for our business and category, one marked by persistently high inflation and trading down by consumers among proteins, slowing economy in key markets, and increased competitive activity."
Beyond Meat noted a 16.9% decrease in total pounds of product sold, and a 4.4% decrease in net revenue per pound. The company's U.S. retail revenues dropped 17.1%, driven by a 22.5% decrease in pounds sold.
For fiscal 2023, Beyond Meat anticipates revenue between $375 million and $415 million, representing a 1% to 10% decline from 2023. It expects low double-digit gross margins to increase sequentially during the year. And Beyond Meat expects to be cash flow positive within the second half of 2023.
BYND Stock
Beyond Meat stock rose more than 10% to 18.88 on Friday after spiking nearly 19% following the earnings results. After Friday's gains, BYND stock is up 2% the past month, and up nearly 53.4% year-to-date. Shares closed on Friday a bit about 9% below the stock's 200-day moving average.
Bernstein raised its price target on Beyond Meat stock to 18, from 10, and maintained a market perform rating. Analyst Alexia Howard called the results, "another cautiously more positive quarter, although the company is by no means out of the woods yet."
Mizuho boosted its target to 20, from 11. It held the stock's rating at neutral, but fiscal 2023 plans include an inflection in strategy better capable of building a foundation for multiyear revenue growth, the note said.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
