Beyond Meat Shares Fall as Company Reveals a Wider Than Expected Loss in Q2

Shares of plant-based company Beyond Meat saw its shares falling on Thursday after the company revealed a wider than expected loss amid higher costs for the second quarter.

Despite this, the company also beat on revenue but it wasn’t enough to keep shares from falling over 4% in extended after-hours trading.

This may be because the company also offered an outlook for third-quarter and sales are expected to fall short of what Wall Street was looking for.

For the second quarter, Beyond Meat reported a loss per share of 31 cents. This is compared to the 24 cents that had been expected. Revenue at $149.4 million came in higher than the $140.8
million expected.

The company said its net loss widened to $19.7 million, or 31 cents per share, from a loss of $10.2 million, or 16 cents per share, a year earlier. Analysts per Refinitiv were expecting a loss per share of just 24 cents.

The losses accelerated due to investments the company is making to support its expansion efforts said Beyond Meat. This includes adding to its workforce and spending more on marketing, as well as higher freight costs.

Net sales rose 31.8% to $149.4 million, beating expectations of of $140.8 million.

Looking ahead to the third quarter, the company expects revenue of $120 million to $140 million. Wall Street was expecting $153.3 million. The company also said that it expects food service sales growth to moderate because restaurants and cafeterias restocked their bare refrigerators and freezers during the second quarter.

“I’m optimistic about what lies ahead,” Company president Ethan Brown said in a statement. “That said, given the recent uptick of Covid-19 cases, which could disrupt demand patterns, we believe caution for the balance of the year generally remains appropriate.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.