Beyond Meat (BYND) Misses Q4 2021 Earnings Estimates, Stocks Fall

Beyond Meat reported a bigger-than-expected loss and lower revenue for its fourth quarter on Thursday.

The company also released a weak guidance for its 2022 revenue, although it said it plans to spend less on growing the business.

Shares of the company fell more than 8% in extended trading.

Here’s what the company reported in the three months ended Dec. 31 compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Loss per share: $1.27 vs. 71 cents expected
  • Revenue: $100.7 million vs. $101.4 million forecast

Beyond posted a net loss of $80.37 million, or 1.27 cents per share, in the fourth quarter, higher than its loss of $25.08 million, or 40 cents per share, a year earlier. Analysts polled by Refinitiv had expected a loss of 71 cents per share.

Net sales fell 1.2% to $100.7 million, below expectations of $101.4 million.

CEO Ethan Brown said in a statement that the company plans to “significantly moderate” its operating expense growth in 2022, which could help it return to profitability.

“The investments we made in our team, infrastructure and capabilities in the US, EU and China, as well as extensive product scaling activities for key strategic partners, weighed heavily on operating expenses and gross margin in a fourth quarter and year that was already impacted by lower-than-expected volumes,” Brown said in the statement.

During the quarter, U.S. grocery sales fell 19.5% to $49.98 million. Beyond attributed the decline to weaker demand, increased discounts, loss of market share and five fewer shipping days compared to the year-ago period. After seeing growing demand in 2020, the company’s largest division by revenue has struggled to maintain that pace of growth.

U.S. catering, on the other hand, saw sales jump 34.7% in the quarter to $20.63 million. Outside Beyond’s home market, international sales increased 22.6% to $30.07 million in grocery and foodservice.

For 2022, Beyond projects revenue of $560 million to $620 million, up 21% to 33% from a year earlier. That outlook is slightly lower than Wall Street’s net sales forecast of $637.3 million.

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