Beyond Meat: what to expect from the Nasdaq-listed company's Q2 results

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Beyond Meat is expected to report a deeper loss per share in its upcoming Q2 2022 results.

Source: Bloomberg

 

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 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 02 August 2022 

When are the Beyond Meat's results expected?

Beyond Meat Inc (NASDAQ: BYND), a leader in plant-based ‘meat’, will report financial results for the second quarter (Q2) ended July 2, 2022, on Thursday, August 4, 2022, after (US) market close.

What is ‘The Street’s’ expectation for the Q2 2022 results?

‘The Street's’ expectation for the upcoming results are as follows:

• Revenue of $151.18m (+1.18% year on year)
• Earnings per share (EPS) -$1.18 (Q2 2021 -$0.31)

While Beyond Meat remains the leading plant-based ‘meat’ retailer, the emergence of fierce competition from the likes of ‘Impossible Foods’ and ‘JUST’ are pressuring margins and reflecting in earnings.

Beyond Meat CEO, Ethan Brown, did make reference to current pricing behaviours of competitors being unsustainable after the first quarter (Q1) 2022 results. Whether sustainable or not, losses for the group are expected to deepen in the reporting quarter.

How to trade Beyond Meat into the results

Source: Refinitiv

Refinitiv data shows a consensus of 20 analyst ratings at ‘hold’ for Beyond Meat.

A mean of estimates suggests a long-term price target of $25.21 for the company. The current share price trades at a 21% premium to this assumed long-term fair value (as of the 1st of August 2022).

Source: IG

 

IG sentiment data shows that 98% of clients with open positions on the share (as of the 1st of August 2022) expect the price to rise over the near-term, while 2% of these clients expect the price to fall.

Beyond Meat – technical view

Source: ProRealTime

 

The long-term trend for Beyond Meat remains down as the price continues to trade below the 200-day simple moving average (SMA) - the blue line.

In the short- to medium-term, we have seen a bullish cross over of the 20-day SMA (red line) with the 50-day SMA (green line). The short- to medium-term reversal serves as a correction of the longer-term downtrend.

A move above 39.05 would target a confluence of 200MA and horizontal resistance at the 53.00 level. Only if this level is broken would we reassess our longer-term trend bias which currently remains down. In lieu, we would be looking for short entry on a move higher confirmed with a bearish reversal as long as the 53.00 level remains unbroken.

In summary:

• Beyond Meat Inc. is set to release Q2 2022 results on the 4th of August 2022
• Q2 2022 are expected to show a marginal year-on-year increase in revenue and a loss per share of $1.18
• A long-term broker consensus suggests the share to currently be a ‘hold’, with a longer-term price target of $25.21
• IG clients with open positions on the share are predominantly long
• The longer-term downtrend remains in place despite the short- to medium-term gains we have seen