Beyond Meat said on Wednesday it expects current-quarter revenue of $60 million to $65 million, a forecast that falls short of the roughly $67 million analysts were expecting, according to data compiled by LSEG. The company attributed the lower outlook to ongoing weak demand for its plant-based offerings.
Market reaction to the guidance was volatile. Shares, which closed up about 13% during regular trading on Wednesday, slipped roughly 9% in after-hours trading to about $0.94.
Management has been attempting to stoke consumer interest by introducing new items and broadening its product slate. Earlier this year the company expanded into new plant-based categories with introductions such as Beyond Immerse protein drinks, aimed at consumers focused on protein intake.
For the first quarter, Beyond Meat posted revenue of $58.2 million, narrowly above analysts' average estimate of $58.1 million. On an adjusted basis, the company recorded a loss of $0.10 per share for the quarter, an improvement from an adjusted loss of $0.77 per share in the year-ago period.
The company also addressed regulatory and reporting matters in recent filings. Beyond Meat filed its delayed annual report on April 9 after identifying material weaknesses in inventory accounting controls. The company specified issues related to excess or obsolete inventory and said the filing allowed it to avoid submitting a formal plan to regain compliance with Nasdaq.
The combined picture from the results and guidance is one of modest top-line performance, active product launches intended to revive demand, and internal remediation of accounting controls tied to inventory. The revenue outlook for the current quarter remains below consensus, while first-quarter metrics showed a small beat on revenue and a narrower adjusted loss versus the prior year.
Summary
Beyond Meat forecast second-quarter revenue below Wall Street estimates, reported first-quarter revenue slightly above the consensus, and disclosed material weaknesses in inventory accounting controls in a delayed annual filing.