The shares of Beyond Meat are down by roughly 14% over the past few hours after the company announced it had lowered its third-quarter revenue outlook.
Beyond Meat Lowers Its Q3 Revenue Outlook
Beyond Meat announced earlier today that it is expecting a lower revenue in its fiscal third quarter of the year. The company said it doesn’t expect to hit the earlier estimated levels due to certain events.
According to the company, it expects net sales of $106 million, which is lower than the previous outlook of $120 million to $140 million. Wall Street analysts had expected the company to generate around $133.1 million in its Q3.
Although Beyond Meat didn’t release a forecast for its quarterly earnings, the expected decline in its revenue has seen analysts estimate that it would lose 29 cents per share. The company revealed that numerous reasons led to the decline in its estimated quarterly revenue.
Chief amongst the reasons was the delta variant of the Coronavirus. Beyond Meat revealed that a Canadian distributor reduced its retail orders for a longer period than initially expected as its restaurants reopened. The company also expected an increase in orders, but that didn’t work out as one of its leading customers changed distributors.
Furthermore, the current labor shortages in the United States delayed the company’s distribution expansion and shelf resets. Beyond Meat also had to deal with some operational challenges, which has affected its activities. Its Pennsylvania facility lost potable water for two weeks while another outlet suffered water damage to inventory following severe weather.
BYND Down By 14%
The shares of Beyond Meat have been down by more than 14% since the US market opened earlier today. The decline comes following the company’s announcement earlier today that it expects lower revenue in the current quarter.
BYND had hugely underperformed since the start of the year. Year-to-date, BYND is down by 25%, with the Coronavirus pandemic affecting its activities over the past 18 months.
This article was originally posted on FX Empire