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Shares of Beyond Meat (NASDAQ:BYND) are down almost 5% after the producer of plant-based protein products cut its full-year revenue forecast.
Beyond Meat reported an adjusted loss per share of $1.53 on revenue of $147 million, which compares to the consensus of an adjusted loss of $1.19 on revenue of $149 million. Sales fell 1.6% on a year-over-year basis.
The company also reported $454.7 million in cash and cash equivalents, as of the end of Q2, which is a drop of 55% on YoY basis.
Beyond Meat cut its revenue outlook to now expect between $470 million and $520 million from the prior $560 million to $620 million. The new FY revenue projection is much worse than the consensus of $558.4 million.
The company also announced plans to cut 4% of its global workforce, which will save BYND approximately $8 million.
A Mizuho analyst said weaker sales were expected but he was positively surprised by cost controls.
“Numbers appear close to bottoming, but drivers of near-term revenue acceleration are lacking and, trading at 4.6x EV/our CY23E sales (15% premium vs. tech stocks median), valuation remains stretched for a name with uncertain structural growth potential. We prefer BRBR for investors seeking health-oriented growth stories,” he told clients in a note.
A BofA analyst slashed the price target by 50% to $10 to reflect lower estimates.
“BYND faces considerable headwinds going forward as a once high growth company that now faces a substantially lower growth rate over the medium to longer term, in our view, while contending with worsened profitability. Reiterate Underperform rating,” the analyst added.
