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Factors to Know Ahead of Beyond Meat's (BYND) Q3 Earnings

Zacks Equity Research

Beyond Meat, Inc. BYND is scheduled to report third-quarter 2019 financial numbers on Oct 28, after the closing bell.

The California-based company’s bottom line significantly surpassed estimates in the last reported quarter.

Which Way Are Estimates Headed?

The Zacks Consensus Estimate for third-quarter earnings is pegged at 5 cents. The consensus estimate remained unchanged over the last 30 days. The consensus mark for revenues stands at $82.6 million for the quarter under review.

Beyond Meat, Inc. Price and EPS Surprise

Beyond Meat, Inc. Price and EPS Surprise

Factors to Consider

Beyond Meat remains focused on expanding base across the United States and international regions, which is expected to have benefitted it in the quarter under review.

Encouraged by healthy demand, the company remains focused on product innovation. In this regard, Beyond Meat’s innovation program and increased focus on core categories are likely to have contributed to the top line in the third quarter.

This apart, the company’s supply-chain initiatives and efforts to enhance operational capabilities are likely to have influenced third-quarter performance. In fact, better supply-chain logistics along with lower packaging and material input costs, tolling fee efficiencies, reduced distribution costs and favorable volume are likely to get reflected in Beyond Meat’s gross profit in the quarter under review.

Markedly, management expects third-quarter sales and profitability to remain strong and improve on a sequential basis.

What the Zacks Model Unveils?

Our proven model does not conclusively predict an earnings beat for Beyond Meat this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although Beyond Meat carries a Zacks Rank #2, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

J & J Snacks Foods Corp. JJSF currently has an Earnings ESP of +0.7% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

TreeHouse Foods THS has an Earnings ESP of +1.01% and a Zacks Rank #2 at present.

Conagra Brands CAG currently has an Earnings ESP of +0.6% and a Zacks Rank #3.

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Click to get this free report TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report Conagra Brands Inc. (CAG) : Free Stock Analysis Report J & J Snack Foods Corp. (JJSF) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research