Beyond Meat Inc on Thursday forecast full-year revenue above market estimates and said it was looking to control costs at a time when high inflation is denting demand for its plant-based meat products, sending its shares surging 14% after hours.
The company has had to endure a collapse in demand for its faux meat products as consumers turned back to traditional beef, poultry and pork products.
The plant-based meat maker forecast full-year revenue to be in the range of $375 million to $415 million, the midpoint of which is just above analysts’ average estimate of $394.2 million, according to Refinitiv data.
The company expects operating expenses to slide 22% this year, compared with a 9% rise in 2022.
Beyond Meat beat quarterly expectations for the first time since June 2021. The company’s net revenue fell to $79.9 million in the quarter ended Dec. 31 from $100.7 million a year earlier, but beat analysts expectations of $75.7 million.
Net loss for Beyond Meat narrowed to $66.9 million, or $1.05 per share, in the fourth quarter from about $80.4 million, or $1.27, a year earlier.
In October, Beyond Meat had said it was targeting cash flow positive operations within the second half of 2023.
(Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri)
