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Shares of Beyond Meat Inc. (NASDAQ: BYND ) was down 6% on Tuesday. The stock has gained 35% year over year. The plant-based food products company will report its fourth-quarter 2022 results on Thursday, February 23, after the market closes. Here’s what to expect from the report:
results
Analysts project revenue of $75.8 million for Beyond Meat in Q4 2022. This compares to revenue of $100.7 million reported in the fourth quarter of 2021. In the third quarter of 2022, revenue fell 22.5% year over year to $82, 5 million.
earnings
Analysts forecast a loss of $1.18 per share for the fourth quarter of 2022. This is narrower than the loss of $1.27 per share reported in the same period a year ago and the $1.60 per share reported in the third quarter of 2022.
Points to note
Beyond Meat has been operating in a challenging environment that has taken its toll on the top line. Sales have declined over the past two quarters as inflation and category-related headwinds have dampened demand.
Amid rising costs, consumers prefer to buy cheap protein instead of paying more for plant-based products. They are also more focused on keeping their grocery purchases at an affordable level than following health or environmental trends. Household penetration for the plant-based meat category fell for the second quarter in a row in Q3, down about 20 basis points sequentially.
Beyond Meat has also faced increasing competition in the plant-based food product category. However, a difficult demand environment has caused many brands to exit the category and the company expects the playing field to thin in the mid-term.
The company’s profitability continues to be affected by higher manufacturing costs as well as higher material and logistics costs. It is used to reduce operating costs and rationalize the production network to cope with anticipated growth.
Click here to read the full transcript of Beyond Meat’s Q3 2022 earnings conference call
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