Beyond Meat (BYND) - Get Beyond Meat, Inc. Report fell sharply lower Friday after plant-based food company slashed its third quarter revenue forecast in a surprise update it linked to lower demand and the surge in Delta-variant infections.
Beyond Meat now expects third quarter net revenues of $106 million, compared to prior guidance of between $120 million and $140 million and the FactSet consensus of $133 million.
The El Segundo, California-based group said multiple factors contributed to its revised guidance, including the effects of the Covid-19 Delta variant and a decline in retail orders from a Canadian distributor that "persisted longer than expected."
"The company also experienced a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants, expected incremental orders that did not materialize from a change in a distributor servicing one of the Company’s large customers," Beyond Meat said in a statement. The group also "observed delays in distribution expansion and shelf resets believed to be driven by customer labor shortages, and incurred shortfalls at certain U.S. foodservice customers believed to be driven by the effects of the COVID-19 Delta variant. "
Beyond Meat shares were marked 15.44% in early Friday trading to change hands at $91.85 each, a move that would extend the stock's year-to-date gain to around 26.5%.
Severe weather resulted in the loss of drinkable water for two weeks at one of its Pennsylvania facilities and the company suffered water damage to inventory at another facility. The group said that these issues were partially offset by accelerated orders from an international customer during the quarter.
Beyond Meat is scheduled to report its third quarter results after the closing bell on November 10, with analysts looking for a net loss of 30 cents per share.