Beyond Meat will report second-quarter earnings next Thursday
When we last checked in with Beyond Meat, Inc. (NASDAQ:BYND), the plant-based company was expanding its e-commerce efforts in China. Ahead of an Aug. 5 second-quarter earnings report after the close, BYND is languishing on the charts. Let's take a look at the stock's post-earnings history to determine its possible path in August.
Beyond Meat has failed to outperform earnings expectations on all four of its most recently released quarterly earnings reports. That's resulted in post-earnings bear gaps of 16.9% in November, and a 7% drop in May. For next Friday's trading, the options market is pricing in an 11.8% move regardless of direction, lower than the average move 13.5% BYND has posted after its last eight reports.
A 22% quarterly haircut has taken BYND below its year-to-date breakeven level. The shares' 10-day moving average -- a trendline that's alternated between support and resistance all year -- has applied pressure.
Beyond Meat is a promising growth company still working to expand in a relatively new market. They are undoubtedly the biggest brand in the plant-based meat market and we have seen the company's exposure increase greatly over the past year as a result of partnerships with big brands like KFC, Pizza Hut, and Taco Bell from the Yum! Brands (NYSE:YUM) family. In terms of sales growth, Beyond Meat’s trailing 12-month revenues are up by an outstanding 1185% since fiscal 2017, despite having expansion slowed down significantly by the pandemic’s impact. Overall, BYND is still a long ways away from profitability, but the brand's business model has proven to be sturdy. One of the biggest challenges for Beyond Meat will be to continuously capture greater market share of the food industry.
However, BYND's Schaeffer's Volatility Scorecard (SVS) rating currently sits at 90 out of 100. This suggests the stock has exceeded these volatility expectations during the past year -- a boon for premium buyers.