Benzinga - Beyond Meat, Inc (NASDAQ: BYND) was trading slightly lower on Thursday as the plant-based meat producer headed into its fourth-quarter earnings.
After Beyond Meat printed its third-quarter earnings miss on Nov. 9, the stock rallied 20% the following day and an additional 20% over the subsequent three trading days. For that quarter, Beyond Meat reported a loss of $1.60 per share on revenues of $82.5 million, which missed the consensus estimate of a loss of $1.14 per share on revenues of $98.11 million.
For the fourth quarter, analysts estimate Beyond Meat will report a loss of $1.18 per share on revenues of $75.79 million. Read more about what analysts see here.
From a technical analysis standpoint, Beyond Meat’s stock appears headed lower, having settled into an downtrend pattern on the daily chart.
Of course, holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat. Options traders, particularly those who are holding close dated calls or puts, take on extra risk because the intuitions writing the options increase premiums to account for implied volatility.
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The Beyond Meat Chart: Beyond Meat reversed into a downtrend on Feb. 3 after rejecting from near the 200-day simple moving average the previous day. The most recent lower high was formed on Feb. 16 at $17.99 and the most recent confirmed lower low was printed at the $16.14 mark on Wednesday.
- If Beyond Meat suffers a bearish reaction to its earnings print and falls lower, Thursday’s high-of-day will serve as the next lower high within the downtrend. If that happens and the stock falls under the 50-day SMA, a longer-term and steeper downtrend could be in the cards.
- If Beyond Meat enjoys a bullish reaction to its earnings print and rises above $18, the downtrend will be negated and an uptrend could occur. If an uptrend is on the horizon, bullish traders will want to see the stock break up through the 200-day SMA, although a period of consolidation under that level is likely.
- Beyond Meat has resistance above at $21.06 and $27.19 and support below at $16.65 and $14.28.
Photo courtesy of Beyond Meat.
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