Categories Analysis, Earnings, Retail

Beyond Meat Q1 earnings preview: It’s time to deliver

Thanks to the outlandish valuation on the stock, Beyond Meat (NASDAQ: BYND), has attracted a decent amount of short sellers in its few days of trading. According to the most recent reports, over 40% of its shares are currently being shorted. If the meat substitute company is hoping to make a point, the first quarter-earnings would be the right place and time.

Beyond Meat will report its maiden earnings results on Thursday, June 6, after the regular trading hours. Analysts have projected a loss of 15 cents per share on revenues of $40 million, which is almost half of what the company achieved in the whole of last year.

beyond meat revenue and operating income

For the time being, Wall Street may ignore the bottom-line figures: Beyond Meat is a budding company where cash is more likely to be used to drive growth than to just report profits. The top-line is where the company will need to deliver.

The stock has almost quadrupled since its IPO early last month, briefly breaching the $100 mark.  The positive rally was spurred by the company’s remarkable history of revenue growth and investor confidence in the alternate meat industry, which is set to grow at an annual rate of 40% over the next 10 years.  

READ: Why Beyond Meat valuation is beyond logic

Earlier today a report by the Wall Street Journal that stated that plant-based meat product manufacturers are struggling to meet the rising demand, spurred another stock rally.

Beyond Meat will emerge a winner if it delivers big on the top-line. If it also gives a full year guidance, it will be an icing on the cake.

The El Segundo, California-based company’s market cap is almost 70 times its 2018 full-year revenue, thus making the valuation beyond reason. Post the Q1 results, investors will be looking to find the reasons.   

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Beyond Meat Q1 earnings preview: It’s time to deliver

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top