Beyond Meat shares drop 17% on poor quarter, weak outlook

Revenue modestly improved 13% to $106.4 cardinal from $94.4 cardinal a twelvemonth ago.

Analysts polled by FactSet had forecast a nonaccomplishment of 37 cents a stock connected gross of $109.2 million.

“Our third-quarter results bespeak variability arsenic we saw a diminution from grounds nett revenues conscionable a 4th ago,” Beyond Meat Chief Executive Ethan Brown said successful a connection announcing the results. “Near-term marketplace and operating conditions notwithstanding, we stay committed to our semipermanent strategy.”

The gross forecast for the 4th fourth isn’t precisely sizzling, either. Beyond Meat projects betwixt $85 cardinal and $110 million. Analysts polled by FactSet person projected $130.5 million.

Investors had been bracing for the results. Company shares precocious dipped beneath $100 and skidded to a 52-week debased successful trading Oct. 22 aft Beyond warned of little third-quarter gross than antecedently forecast.

Beyond said it expected income of $106 million, beneath its anterior outlook of $120 cardinal to $140 million. Wall Street analysts surveyed by FactSet were anticipating gross of $109.2 cardinal for the quarter. The institution did not merchandise an outlook for its quarterly earnings, but analysts are expecting a nonaccomplishment of 37 cents a share.

Beyond executives past blamed the gross informing connected COVID-19, labour shortages, and operational challenges.

Shares of Beyond Meat shares are down 25% this year, portion the broader S&P 500 scale SPX, -0.82% has gained 23.7%.