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Monday, July 29, 2019

=Beyond Meat (BYND) reported earnings on Mon 29 July 2019 (a/h)

Beyond Meat misses by $0.16, beats on revs; raises FY19 revs above consensus, EBITDA to positive from break even
Beyond Meat announces 3.25 mln share Proposed Public Offering of Common Stock, 3 mln by selling shareholders

  • Reports Q2 (Jun) loss of $0.24 per share, $0.16 worse thanthe S&P Capital IQ Consensus of ($0.08); revenues rose 286.8% year/year to $67.3 mln vs the $52.71 mln S&P Capital IQ Consensus, primarily due to an increase in sales volumes of products in our fresh platform across both our retail and restaurant and foodservice channels, driven by expansion in the number of retail and foodservice points of distribution, including new strategic customers, international customers, and greater demand from our existing customers.
  • Gross profit was $22.7 million, or 33.8% as a percentage of net revenues, in the second quarter of 2019, compared to $2.6 million, or 15.0% as a percentage of net revenues, in the prior-year period. The increase in gross profit and gross margin was primarily due to an increase in the amount of products sold, resulting in operating leverage and production efficiency improvements. A greater proportion of gross revenues from the Company's fresh platform also contributed to the improvement in gross margin.
  • Co issues upside guidancefor FY19, raises FY19 revs to exceed $240 mln from $210 mln vs. $223.94 mln S&P Capital IQ Consensus. Adjusted EBITDA to be positive compared to prior expectations of break-even Adjusted EBITDA. 

  • === Before market close
    The stock has been on an absolute tear since pricing 9.6 mln shares in an IPO at $25 in early May. The stock is up nearly 400% since opening at $46 on its first day of trading as momentum traders have piled in.
    • Analysts are looking for Q2 EPS of ($0.08) with revenue up 203% to $52.7 mln.
    • The company has guided for break-even EBITDA on revenue of ~$210 mln (+140%). The company will have to handily exceed estimates on the top line because analysts are expecting FY19 revenue of $224 mln.
    • The stock continues to squeeze higher as it announces new products and partners for distribution. Beyond Meat announced Beyond Beef last month. Blue Apron will start carrying the Beyond Burger next month.Bloomberg last week reported that the company is working on a Beyond bacon product.
    • The biggest headwind for the business currently is capacity constraints.
    • With a ~$14 bln market value, the stock trades at a beyond belief ~60x sales multiple vs. the average for protein producers at 1x sales and the average for consumer packaged goods stocks at less than 4x sales.
    • According to S3 Partners LLC, some 44% of the float is sold short. While there are plenty of reasons to be excited about the company's prospects, the stock appears to be inflated by short squeezes and the limited supply of the stock.

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