Plant-based meat products manufacturer Beyond Meat (NASDAQ:BYND) reported third-quarter Fiscal 2022 results that fell short of analysts’ expectations. The diluted quarterly loss came in at $1.60 per share, much higher than the consensus of $1.15 per share. The figure was even worse than the prior-year quarter’s figure of $0.87 per share.
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Similarly, net revenues plunged 22.5% year-over-year to $82.50 million, significantly lower than analysts’ expected figure of $98.11 million. The massive decline in revenue was attributed to the weakening demand for meat substitutes as consumers looked for cheaper protein-based options, including animal meat. In effect, total pounds sold fell 12.8% year-over-year, and net revenue per pound decreased by 11.2%.
Nonetheless, BYND stock inched marginally higher in after-hours trading yesterday, as the company’s revenue fell in line with its revised expectations, announced in mid-October. Meanwhile, the stock lost 9.2% to hit a new 52-week low of $11.56, on November 9, amid a broader market sell-off and anticipation of results.
For the full year of Fiscal 2022, the company expects net revenue to fall in the range of $400 million to $425 million. Further, Beyond Meat aims to become cash flow positive in the second half of 2023.
What is the Future of Beyond Meat Stock?
Beyond Meat stock is being hurt by the turbulent macro backdrop. Also, the company needs to strategically cut costs and become profitable. Although the company is taking steps in that direction, the results will take time to unfold. Until then, analysts have a Hold consensus rating on BYND stock based on six Holds and one Sell rating. On TipRanks, the average Beyond Meat price target of $15 implies 26.9% upside potential to current levels. At the same time, the stock has lost a whopping 81.8% year to date.
