Plant-based protein maker guided third-quarter revenue to $60 million to $65 million, but weak U.S. demand, a one-cent adjusted earnings miss and a debt extinguishment gain accompanied a sharp share decline.
Beyond Meat shares fell 11.47% to 54 cents on Thursday, near their 52-week low, after the plant-based protein maker reported second-quarter revenue of $68.8 million that beat estimates but an adjusted loss of 9 cents per share that missed consensus by 1 cent. Net income was $16.4 million, versus a net loss of $31.8 million a year earlier, largely because of a $57.7 million non-cash gain on debt extinguishment. International retail sales rose 16.5% to $18.5 million, partly offsetting weak domestic demand as U.S. retail revenue fell 9.9% and U.S. foodservice dropped 27.6%. The company projected third-quarter revenue of $60 million to $65 million, with the midpoint above analysts' average estimate of $62.2 million compiled by LSEG.