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Beyond Meat (BYND) Q4 Loss Wider Than Expected, Stock Down

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Beyond Meat, Inc. BYND posted soft fourth-quarter 2021 results, wherein both the top and the bottom lines missed the Zacks Consensus Estimate and deteriorated year over year. Results were affected by some softness in U.S. retail channel revenues stemming from pandemic-led low demand as well as a lower gross margin. However, the foodservice channel remained strong, both in the United States and internationally.

Shares of Beyond Meat plunged 10.8% in the after-market trading session following the earnings release on Feb 24.

Quarterly Highlights

The company posted an adjusted loss of $1.27 per share compared with the Zacks Consensus Estimate of a loss of 73 cents. BYND had posted an adjusted loss per share of 34 cents in the year-ago period.

Beyond Meat, Inc. Price, Consensus and EPS Surprise

Beyond Meat, Inc. Price, Consensus and EPS Surprise
Beyond Meat, Inc. Price, Consensus and EPS Surprise

Beyond Meat, Inc. price-consensus-eps-surprise-chart | Beyond Meat, Inc. Quote

Net revenues of $100.7 million dipped 1.2% year over year while missing the Zacks Consensus Estimate of $104 million. Lower U.S. retail channel revenues were only partly compensated by the strength in U.S. foodservice and international channel revenues. Net revenues per pound fell nearly 7% to $5.19 in the fourth quarter of 2021.

U.S. net revenues dropped 8.8% to $70.6 million, with retail revenues declining 19.5% to about $50 million and foodservice revenues growing 34.7% to $20.6 million. International net revenues advanced 22.6% to roughly $30 million, wherein retail revenues grew 10.6% to $14.3 million and foodservice revenues surged 36.1% to $15.7 million.

U.S. retail channel net revenues were hurt by reduced demand, five lesser shipping days in the quarter under review, higher trade discounts and a lower market share. U.S. foodservice and international channel revenues benefited from elevated demand at the existing outlets, expanded distribution and product launches, somewhat negated by higher trade discounts.

Gross profit for the quarter came in at $14.2 million, with the gross margin amounting to 14.1%. In the fourth quarter of 2020, adjusted gross profit was $29.1 million and the adjusted gross margin was 28.5%. The year-over-year gross margin downside was mainly due to the impact of the product mix and higher trade discount on revenues per pound and escalated manufacturing costs. This was partially offset by lower per unit direct material costs.

Zacks Investment Research
Zacks Investment Research


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Other Financial Updates

Beyond Meat concluded the quarter with cash and cash equivalents of $733.3 million, total outstanding debt of $1.1 billion and total shareholders’ equity of $132.5 million. In full-year 2021, the company used net cash from operating activities of $301.4 million, while capital expenditures for the period totaled $136 million.

Outlook

On its fourth-quarter earnings call, management stated that the operating landscape continues to remain challenged by the pandemic-related volatility in the near term, including the impact of COVID-19 on demand, availability of labor as well as supply-chain hurdles. However, the company’s guidance for 2022 takes into account the reasonable containment of infection rates in the United States as well as internationally. For full-year 2022, management projects net revenues in the range of $560-$620 million, suggesting growth of 21-33% from the 2021 level.

Shares of this Zacks Rank #3 (Hold) company have declined 59.3% in the past six months compared with the industry’s decline of 0.3%.

Looking for Consumer Staple Stocks? Check These

Some better-ranked stocks are Tyson Foods TSN, Pilgrim’s Pride PPC and Medifast, Inc. MED

Tyson Foods, a renowned meat products company, carries a Zacks Rank #1 (Strong Buy) at present. Shares of Tyson Foods have risen 14.8% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tyson Foods’ current financial-year sales and earnings per share (EPS) suggests growth of 9.5% and 2.9%, respectively, from the year-ago reported number. TSN has a trailing four-quarter earnings surprise of 32.2%, on average.

Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products, carries a Zacks Rank #2 (Buy). Shares of Pilgrim’s Pride have moved down 11.7% in the past six months.

The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial-year EPS suggests growth of 16.2% from the year-ago reported number. PPC has a trailing four-quarter earnings surprise of 24.9%, on average.

Medifast, the manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products, currently carries a Zacks Rank #2. Shares of Medifast have dropped 22.2% in the past six months.

The Zacks Consensus Estimate for Medifast’s current financial-year EPS suggests growth of 16.6% from the year-ago reported figure. MED has a trailing four-quarter earnings surprise of 19.5%, on average.


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