Beyond Meat (BYND) plans to announce its second-quarter earnings after the close of trading today. For the quarter analysts expect a sales increase of over 200%. However, analysts expect the company to suffer a net loss during the quarter.
Beyond Meat's revenue growth
For the second quarter, analysts expect Beyond Meat to show sales of $ 50.7 million Growth of 203.5% from $ 17.4 million in the same quarter of 2018 is planned to increase the company's revenues, with an increase in the number of retail and foodservice outlets, increased demand from existing customers and the introduction of Beyond US grocery burgers could increase the company's sales, but the company ceased its frozen chicken strip product line in the first quarter of 2019. The company's decision to discontinue frozen chicken strips To discontinue frozen chicken strip product line could offset some of BYND's revenue growth.
BYND Reports Net Loss
Analysts predict a decline in the net loss of Beyond Meat for the second quarter. For the quarter, the company forecasts a net loss of $ 4.5 million or a loss of $ 0.09 per share. By comparison, the Company's net loss for the same quarter of 2018 was $ 7.4 million.
Since the IPO on May 2, Beyond Meat's stock is on a golden run. The company had estimated its IPO at $ 25. On July 26, the company traded at $ 239.40, up 839.6% from the IPO price. The impressive performance of the first quarter, the good prospects, the development of new products and new partnerships have led to an increase in the company's share price.
On July 24, Dunkin & # 39; Brands introduced the Beyond Sausage Breakfast Sandwich with Beyond Meat's sausage patty made from 100% plant-based ingredients. Earlier, on June 12, Tim Hortons of Restaurants Brand International (QSR) introduced Beyond Meat Breakfast Sandwiches to 4,000 of its restaurants in Canada. In addition, in the last week of June, the company launched a new Beyond Beef product to recreate traditional minced meat.
Valuation Multiple and Analyst Recommendations
We have considered the Forward EV to Sales Multiple for analysis. On July 26, the company traded with an EV-to-sales multiple of 48.9. In comparison, Peers, Tyson Foods, Conagra Brands, General Mills and Mondelēz International both traded at 0.93x, 2.28x, 2.72x and 3.68x forward PE multiples.
Beyond Meat is still in a growth phase and has considerable room to expand. In May, analysts at Barclays predicted that the alternative meat market would reach $ 140 billion over the next decade. The expansion margin allowed the company to earn a higher valuation multiple than its competitors.
Prior to the second quarter results, analysts favor a hold rating for Beyond Meat. All eight analysts following the company rated it "hold." On average, the analysts' price target for BYND is $ 115.67, down 50.8% from the current stock price.