Beyond Meat Misses Q3 EPS by 47c, Guidance Misses

Published 09/11/2022, 22:20

Beyond Meat (BYND) reported Q3 EPS of ($1.60), $0.47 worse than the analyst estimate of ($1.13). Revenue for the quarter came in at $82.5 million versus the consensus estimate of $114.27 million.

GUIDANCE:

Beyond Meat sees FY2022 revenue of $400-425 million, versus the consensus of $453.4 million.

  • 2022 net revenues are expected to be in the range of approximately $400 million to $425 million, representing a decrease of approximately 14% to 9% compared to 2021.
  • On October 14, 2022, the Company announced a reduction-in-force affecting approximately 19% of its global workforce. As a result, the Company estimates that it will incur one-time cash charges of approximately $4 million in connection with the reduction-in-force, primarily consisting of notice period and severance payments, employee benefits, and related costs. The majority of these charges will be incurred in the fourth quarter 2022, and the Company expects the reduction-in-force to be substantially complete by the end of 2022, subject to local law and consultation requirements, which may extend the process beyond the end of 2022 in certain countries. The charges that we expect to incur are subject to assumptions, including local law requirements, and actual charges may differ from the estimate disclosed above.
  • In aggregate, over the next twelve months, the reduction-in-force, combined with the elimination of certain open positions and recent changes to the executive leadership team, as described in a Form 8-K filed with the Securities and Exchange Commission (“SEC”) on October 14, 2022, is expected to result in approximately $27 million in cash operating expense savings, and an additional approximately $12 million in non-cash savings related to previously granted, unvested stock-based compensation which would have vested over the next twelve months. In addition, as a result of these actions, the Company expects to recognize approximately $3 million of one-time non-cash savings related to the reversal of previously expensed, unvested stock-based compensation in the third and fourth quarters of 2022.
  • The Company is targeting cash flow positive operations within the second half of 2023

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