Beyond Meat beats the forecast for earnings and revenue

on Oct 29, 2019
Updated: Mar 11, 2020
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  • Beyond Meat printed a GAAP profit of $4.1 million (6 cents per share).
  • Revenue raised from $26.3 million last year to $92 million for Q3 of 2019.
  • Stock has declined 55% in the past three months and around 32% in the last month.
  • At around $100 per share, the stock is trading around 300% above the IPO price.
  • Gregory Bohlen has announced his resignation from the company's board of directors.

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Competing against the giants like Tyson Foods, Kroger, Kellogg, and Nestle, Beyond Meat was being closely observed by the analysts and investors alike in the stock market. As of Monday, the Q3 earnings report has highlighted that the meat-substitute company has printed a GAAP profit of $4.1 million (6 cents per share) which is triple as compared to the figure for Q3 of 2018.

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Beyond Meat Posts Revenue Increase From $26.3 Million To $92 Million

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In terms of revenue, the company has posted a remarkable increase from $26.3 million last year, to $92 million for Q3 of 2019. FactSet had previously forecasted a profit of 4 cents per share for Beyond Meat and revenue of $82.2 million. Despite the largely positive outlook, however, the stock fell around 5% later on Monday (after-hours trading).

Following the earnings report, the estimate for full-year sales was also reported to have been upgraded to $275 million versus the previously highlighted $265 million. In July of 2019, when the share prices had surged to over 200 per share for Beyond Meat, FY sales target was raised from $210 million to $240 million.

In the past three months, Beyond Meat stock has sharply declined by 55%. While it gained 4.6% on Monday and was seen trading at $105.41 at day close, the after-hours trading reported the stock to have fallen below $100 per share. The market capitalization for Beyond Meat is currently capped at $6.4 billion.

Since July of 2019, Beyond Meat has had a few changes in executive personnel. Sanjay Shah who had previously served Tesla as an executive was hired as the chief operating officer while Stuart Kronauge from Coca-Cola was welcomed aboard as the new chief marketing officer. Earlier on Monday afternoon, Beyond Meat has also announced Gregory Bohlen’s departure from the company as the director.

Ethan Brown, the chief executive of Beyond Meat, called Bohlen’s resignation as planned and not derived from an internal disagreement within the company. He further appreciated the director for his service since 2013 in the conference call and stated that there are no plans of replacing Bohlen as the board of directors will now be reduced to 9 members instead of 10.

Technical Levels To Watch For Beyond Meat Stock

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The lockup period for the company’s stocks ends today that makes around 80% of the outstanding shares eligible to be traded on the public market. At around $100 a share, Beyond Meat is still trading roughly 300% above the initial public offering (IPO) price of $25 for the meat-substitute company. Chief Marketing Technician, JC O’Hara of MKM Partners, has highlighted strong support at around $85 for the stock. Breaking below this level will open doors for further downside. On the upside, strong resistance is currently located at around $140, stated the technical analysis expert.

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