Beyond Meat reported a big fourth-quarter loss late Tuesday. Revenue fell less than expected, though the fake-meat maker guided low on sales. Still, BYND stock soared Wednesday after the company announced plans to cut operating costs and other "right-sizing" moves. But shares closed well off highs.
Beyond Meat Earnings
Beyond Meat lost $2.40 a share, though that might not be comparable to FactSet estimates for an 89-cent loss. The Q4 loss included various noncash charges. Revenue fell 8% to $73.68 million, topping views for $66.7 billion.
The company sees first-quarter revenue of $70 million to $75 million, well below consensus for $89 million. The company expects 2024 sales of $315 million to $345 million, largely below analysts' target of $344.4 million.
But the company said it plans major changes to improve operations and the product.
"Our 2024 plan includes taking steps to steeply reduce operating expense and cash use; pricing actions and the right-sizing of our production footprint, both in support of margin expansion," CEO Ethan Brown said in the earnings release. He also sees a "years-in-the-making core platform renovation ... that delivers superior health benefits and taste."
Beyond Meat Stock
Beyond Meat stock jumped 31% to 9.83 on Wednesday, but coming well off intraday highs of 12.12. Shares regained the 50-day line but closed below the 200-day moving average. Shares are off intraday highs of 12.12. BYND stock edged up 0.9% to 7.52 on Tuesday. Shares hit a record low of 5.58 last October.
While beaten-down money-losing stocks that are heavily shorted can see massive moves to the upside, the risks are high that they will continue to fall. Targeting stocks with strong fundamentals and positive share price performance is a better investing strategy over time.
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