Oct 28, 2019

Stocks | Restaurants: Beyond Meat stock slides despite earnings beat

Amelia Lucas

GP: Beyond Meat 190423
A package of Beyond Meat beef crumbles is displayed for a photograph in Tiskilwa, Illinois, April 23, 2019.
Daniel Acker | Bloomberg | Getty Images
Beyond Meat on Monday reported its first quarterly profit and topped analysts’ expectations for quarterly earnings and revenue.
Despite the beat, shares of the company tanked as much as 15% in extended trading. The stock, which has soared 321% since its initial public offering, closed Monday up 4.5%. 
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
  • Earnings per share: 6 cents vs. 3 cents expected
  • Revenue: $92 million vs. $82.2 million expected
Beyond reported fiscal third-quarter net income of $4.1 million, or 6 cents per share, up from a loss of $9.3 million, or $1.45 per share, a year earlier. Analysts surveyed by Refinitiv were expected earnings of 3 cents per share.
Net sales rose 250% to $92 million, topping expectations of $82.2 million.
Beyond also raised its full year 2019 outlook for revenue. It now expects revenue in a range of $265 million to $275 million, up from a prior forecast of more than $240 million.
The last time that Beyond reported its quarterly results, the company announced a surprise secondary share offering, sending its stock price on a downward spiral. Shares are still up 321% since its initial public offering. Beyond’s lockup period from its initial public offering expires Tuesday, allowing insiders to cash out even more shares.

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