Shares of California-based Beyond Meat (BYND) declined 11.8% on Friday to close at $95.80 after the company lowered its revenue guidance for the third quarter of 2021.
The company expects to report net revenues of nearly $106 million against the earlier guidance range of $120 million to $140 million. The Street expects Beyond Meat to post net revenues of $133.1 million in the third quarter.
The company manufactures plant-based meat substitutes under the brand names Beyond Beef Crumbles, Beyond Chicken Strips, Beyond Sausage and Beyond Burger.
Beyond Meat believes that macro and micro-economic factors, including the impact of the COVID-19 Delta variant, have hampered the demand. Furthermore, it witnessed lower retail orders during the quarter.
The company is scheduled to announce its third-quarter financial results on November 10. (See Insiders’ Hot Stocks on TipRanks)
Last week, Goldman Sachs (GS) analyst Adam Samuelson reiterated a Sell rating on the stock but reduced the target price to $85 from $99 (11.3% downside potential).
The analyst said, “Directionally softer sales trends are not entirely surprising given that recent U.S. retail sales trends, as reported by Nielsen, show Beyond’s measured sales lagging the category and peers despite the company’s higher promotional intensity.”
Overall, the stock has a Moderate Sell consensus rating based on 1 Buy, 4 Holds and 4 Sells. The average Beyond Meat price target of $100.86 implies 5.2% upside potential. Shares have lost 41.8% over the past year.
Related News:
23andMe to Acquire Lemonaid Health for $400M
Roper Technologies Posts Mixed Q3 Results
Simply Good Foods Rise 8.6% as Q4 Results Top Estimates
