Beyond Meat sales nearly quadruple, stock plunges after secondary offering announced
marketwatch.com
Stock of meat-alternative company has surged to nine times its May IPO price
Just like its shares, Beyond Meat Inc. sales are growing faster than expected, and the company plans to sell more of both products.
Beyond Meat BYND, -9.55% on Monday afternoon said that sales nearly quadrupled from a year ago, reporting a second-quarter loss of $9.4 million, or 24 cents a share, on sales of $67.3 million, after losses of $7.4 million on revenue of $17.4 million a year ago. Earnings before interest, income taxes, amortization and depreciation, and adjusted to strip out stock-based compensation and other expenses, came in at a gain of $6.9 million.
Analysts on average expected the company to report losses of 9 cents a share on revenue of $52.5 million, according to FactSet. Shares wobbled in immediate after-hours trading following the report’s release, as wider losses and larger revenue were digested, but then plunged as the company made a second announcement.
Beyond Meat revealed that it plans to sell more shares in a secondary offering. The company plans to sell an additional 3.25 million shares, with 3 million coming from selling stockholders and 250,000 shares from the company. After that announcement hit, the stock plunged to a loss of more than 10%.
Beyond Meat stock has performed beyond any expectations so far on the public markets, surging nine time its IPO price of $25 a share. The stock closed with a 5.4% decline at $222.13 on Monday, giving it a market value of $13.4 billion at the close, according to FactSet. The S&P 500 index SPX, -0.16% has gained about 3.6% since Beyond Meat went public.
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