Benzinga - Shares of Beyond Meat Inc (NASDAQ: BYND) spiked in Friday’s early session, after the company reported quarterly earnings.
The El Segundo, California-based reported a quarterly loss of $1.05 per share, higher than the estimates of a loss of $1.15 per share. Here's how analysts reacted.
- Bank of America Securities' Peter Galbo maintained an Underperform rating and price target of $5.
- Mizuho Securities analyst John Baumgartner maintained a Neutral rating and price target of $20.
BofA Securities
- Beyond Meat's fourth quarter sales for 2022 were $79.9 million. That's above the BofA forecast of $66.5 million and gross margin. While still negative, it's a meaningful improvement compared to the third quarter, Galbo explained.
- Although the company “showed progress” in the quarter, there are concerns around its “ability to generate sales growth in 2H despite easy compares,” and in case growth does return but inventories are lower, “the ability to maintain service/fill rates at adequate levels,” he added.
- “Q4 was largely as expected, but FY23 plans include an inflection in strategy better capable of building a foundation for multi-year revenue growth,” Baumgartner wrote.
- “Rather than continue pursuing building mass markets with price discounts and marketing, focus narrows to channels/segments resonating most with consumers,” he added.
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