Beyond Meat: Can This Broken Stock Be Saved?
It's not often that a stock can report weak revenue numbers and slash its guidance but still jump double digits on the news. That's exactly what happened to Beyond Meat (NASDAQ: BYND), a producer of plant-based meat, on Thursday. Shares gained 18% as the company released a disappointing third-quarter update.
Beyond Meat now expects $75 million in revenue in the third quarter, down 9% from a year ago and well below the analyst consensus of $87.9 million. It also forecast a negative gross profit of $7 million to $8 million in the quarter, and cut its full-year revenue forecast to between $330 million and $340 million, reflecting a year-over-year decline of 19% to 21%.
The reason the stock rallied on the news was the company's announcement of yet another cost-cutting plan, including layoffs for 19% of its non-production workforce, or 8% of total jobs. It's also initiating a review of its operations that includes adjusting its pricing strategy to support gross margin expansion, and it aims to improve its inventory management to reduce working capital.
Source Fool.com