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Beyond Meat on Thursday reported a wider-than-expected loss as higher costs and investments in its business weighed on margins.
The company also expressed caution for the second half of the year, citing the delta Covid variant.
Shares of the company fell more than 4% in extended trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Loss per share: 31 cents vs. 24 cents expected
- Revenue: $149.4 million vs. $140.8 million expected
In the fiscal second-quarter, Beyond said its net loss widened to $19.7 million, or 31 cents per share, from a loss of $10.2 million, or 16 cents per share, a year earlier. Analysts surveyed by Refinitiv were expecting a loss per share of just 24 cents.
The company said losses accelerated due to investments it is making to support its expansion efforts, like adding to its workforce and spending more on marketing, as well as higher freight costs.
Net sales rose 31.8% to $149.4 million, topping expectations of $140.8 million.
In the United States, which accounts for two-thirds of Beyond’s revenue, grocery demand fell, but food service sales more than tripled compared with a year ago. Still, grocery outlets account for roughly three-quarters of Beyond’s U.S. sales.
Outside of the U.S., both retail and food service saw sales more than double. The company has been expanding in Europe and China.
Looking ahead to the third quarter, Beyond said it expects revenue of $120 million to $140 million, falling short of Wall Street’s estimates of $153.3 million.
“I’m optimistic about what lies ahead,” CEO Ethan Brown said in a statement. “That said, given the recent uptick of Covid-19 cases, which could disrupt demand patterns, we believe caution for the balance of the year generally remains appropriate.”
This is a breaking news story. Please check back for updates.