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Investing.com — Beyond Meat (NASDAQ:BYND) fell more than 5% in after-hours trade even as it reported inline second-quarter earnings and revenue that topped estimates.
Beyond Meat reported a loss per share of 2 cents on sales of $113 million for the quarter, compared to the average analyst estimate of a loss per share of 2 cents on revenue of $98.6 million.
The better-than-expected performance on the top line was driven by performance in retail in North America, but margin growth was held back by packing costs.
“The $5.9 million in costs associated with product repacking activities in the second quarter of 2020 were driven by the company’s efforts to repurpose certain foodservice inventory into retail products as a result of the sudden shift in consumer demand related to COVID-19,” the company said.
Gross margin fell to 29.7% form 33.8% for the quarter year-on-year.
“Growth in volume sold was driven mainly by increased retail channel sales, resulting from distribution gains both domestically and abroad, higher sales velocities at existing retail customers, and contribution from new product introductions. During the quarter, increased retail channel sales were partially offset by a reduction in foodservice channel sales as a result of the ongoing COVID-19 pandemic,” the company added.
Shares have almost tripled since March. The stock has two buy ratings, six holds and six sells, according to data compiled by Investing.com.
The company suspended its 2020 outlook, citing a lack of visibility in the wake of the Covid-19 pandemic.
