There’s no pretty way of putting it: Beyond Meat Inc.’s quarterly results could be described as dead meat.
The company’s stock
BYND,
-3.58%
was initially pummeled more than 17% in extended trading Wednesday after it reported a fiscal third-quarter net loss of $54.8 million, or 87 cents a share, compared with a net loss of $19.3 million, or 31 cents a share, in the year-ago quarter. Adjusting for one-time losses, Beyond reported a net loss of $36.8 million.
Revenue modestly improved 13% to $106.4 million from $94.4 million a year ago.
Analysts polled by FactSet had forecast a loss of 37 cents a share on revenue of $109.2 million.
“Our third-quarter results reflect variability as we saw a decline from record net revenues just a quarter ago,” Beyond Meat Chief Executive Ethan Brown said in a statement announcing the results. “Near-term market and operating conditions notwithstanding, we remain committed to our long-term strategy.”
In a conference call later with analysts, Brown blamed a “difficult operating environment” on the COVID Delta variant, labor shortages, and shipping delays. “Quite a few disruptions occurred in the quarter,” said Brown, who vowed to ramp up health messaging in 2022 as more consumers show concern about the climate. Brown repeatedly mentioned record revenue of $149.4 million in the previous quarter.
The revenue forecast for the fourth quarter isn’t exactly sizzling, either. Beyond Meat projects between $85 million and $110 million. Analysts polled by FactSet have projected $130.5 million.
Investors had been bracing for the results. Company shares recently dipped below $100 and skidded to a 52-week low in trading Oct. 22 after Beyond warned of lower third-quarter revenue than previously forecast.
Beyond said it expected sales of $106 million, below its prior outlook of $120 million to $140 million. Wall Street analysts surveyed by FactSet were anticipating revenue of $109.2 million for the quarter. The company did not release an outlook for its quarterly earnings, but analysts are expecting a loss of 37 cents a share.
Beyond executives then blamed the revenue warning on COVID-19, labor shortages, and operational challenges.
Shares of Beyond Meat shares are down 25% this year, while the broader S&P 500 index
SPX,
-0.82%
has gained 23.7%.