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A Beyond Meat Analyst's 7 Takeaways From Its First Post-Earnings Call

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A Beyond Meat Analyst's 7 Takeaways From Its First Post-Earnings Call

Plant-based food product maker Beyond Meat Inc (NASDAQ: BYND) reported its first-ever earnings Thursday as a public company and hosted a conference call that Bank of America Merrill Lynch had seven takeaways from, the sell-side firm said in a new note. 

The Analyst

Bryan Spillane maintained a Neutral rating on Beyond Meat with a price target lifted from $85 to $101.

The Thesis

Beyond Meat reported a $2-million revenue beat in the first quarter, a 70-basis point gross margins beat and better-than-expected operating income and adjusted EBITDA losses, Spillane said in a Friday note. (See his track record here.) 

The analyst's seven takeaways from Beyond Meat's conference call were: 

  • Beyond Meat's 2019 net sales guidance of $210 million or more doesn't include potential new customer deals and already exceeded Spillane's estimate of $197 million.
  • The company is expected to break even on an EBITDA basis this year versus expectations for a modest loss.
  • The guidance for a high-30s percent gross margin rate and mid-teens EBITDA margins is consistent with expectations.
  • The company "expressed confidence" that its supply chain can satisfy a "significant" growth in demand.
  • The first-mover advantage is backed by a superior product and an authentic, influencer-supported reputation.
  • Potential areas of incremental upside include an expansion into Europe and Asia.
  • Expansion into other products or protein forms to bolster category leadership would be supported by R&D activity.

Price Action

Beyond Meat shares were rallying Friday and trading up by 31.06 percent at $130.40 at the time of publication. 

Related Links:

Beyond Meat Continues Surge After Q1 Earnings Beat

Burger King, McDonald's And KFC's Stance On Plant-Based Meat Products

Photo courtesy of Beyond Meat. 

Latest Ratings for BYND

DateFirmActionFromTo
Mar 2020Goldman SachsDowngradesNeutralSell
Mar 2020B of A SecuritiesDowngradesNeutralUnderperform
Mar 2020JP MorganMaintainsNeutral

View More Analyst Ratings for BYND
View the Latest Analyst Ratings

 

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