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Beyond Meat Reports Massive Loss, Lowers Guidance, But Stock Soars on 'Right-Sizing' Expectations.
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| Beyond Meat Reports Massive Loss |
Late on Tuesday, Beyond Meat (BYND) revealed a significant fourth-quarter loss. Despite the artificial meat manufacturer's low sales forecast, revenue decreased less than anticipated. However, as soon as the business revealed plans to reduce operational expenses and make other "right-sizing" adjustments, BYND stock shot up overnight.
Beyond Meat Revenues
Although that may not be close to FactSet forecasts for an 89-cent loss, Beyond Meat lost $2.40 per share. Several non-cash items were included in the Q4 deficit. Revenue decreased by 8% to $73.68 million, exceeding $66.7 billion in views.
Much less than the $89 million predicted by analysts, the company expects first-quarter revenue of between $70 and $75 million. The business projects $315 million to $345 million in sales in 2024, significantly less than the $344.4 million analysts had predicted.
However, the business said that significant adjustments are planned to enhance both the product and operations.
"Our 2024 plan includes taking steps to steeply reduce operating expense and cash use; pricing actions and the right-sizing of our production footprint, both in support of margin expansion," Ethan Brown, our CEO, stated in the earnings announcement. He moreover anticipates a "years-in-the-making core platform renovation ... that delivers superior health benefits and taste."
Not Just Meat Stock
The late-day surge of 73.5% in Beyond Meat's shares indicated a break over its 50-day and 200-day moving averages. The price of BYND stock increased 0.9% on Tuesday to $7.52. Last October, shares fell to a record low of $5.58.
Although severely shorted, downgraded, money-losing equities can see enormous increases in value, there is a strong likelihood that their decline will continue. Over time, a superior investing strategy is to focus on stocks with solid fundamentals and rising share prices.
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