Beyond Meat’s earnings are due to be released on Nov. 10..
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Beyond Meat shares tumbled 14% in early trading after the company slashed its forecast for revenue in the fiscal third quarter, citing operational problems linked to the Delta variant of Covid-19.
The maker of plant-based faux meat (ticker: BYND) was down to $93.58 after the company said Friday it expects net revenue for the quarter of about $106 million, compared with its prior forecast of $120 million to $140 million.
The company said it lost retail orders in Canada, and that orders it had expected didn’t arrive. At the same time, efforts to expand distribution ran into snags—an issue Beyond Meat said was due to labor shortages among customers. The company also cited problems “at certain U.S. foodservice customers believed to be driven by the effects of the COVID-19 Delta variant.”
Analysts have previously noted that they remain cautious about Beyond Meat’s earnings, which are expected to be reported Nov. 10.
Earlier this week, Credit Suisse analyst Robert Moscow wrote that he thinks food-service sales are on the decline heading into 2022. He also said he thinks that Wall Street’s expectations for the company reflect an excessively optimistic view of the likely sales of McDonald’s (ticker: MCD) McPlant burger, which is supplied by Beyond Meat.
Supply-chain disruptions and the labor shortage have made business conditions more challenging, Moscow said, noting that disruptions at U.S. ports will hinder Beyond’s ability to export its products to Europe and China.
The latest news is confirmation that Moscow was right to be concerned.
Shares of Beyond Meat have fallen 13% in the year to date, while the S&P 500
has gained 21%.
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