Confirming yesterday's observation that the market is quick and merciless to punish any and all stocks that miss expectations this quarter, moments ago (former growth stock) Beyond Meat plunged 14% after reporting preliminary net revenue for third quarter of about $106 million, missing the estimate of $134.3 million by about 30%, and a huge disappointment to the company's prior guidance which was $120 million to $140 million.
As Bloomberg notes, while the Company’s previous third quarter guidance anticipated a sequential decline in net revenues, the deceleration was far larger than anticipated.
The company said that multiple factors contributed to the shortfall during the quarter:
- Demand was impacted by broader ongoing macro and micro-economic factors, including among others, the effects of the COVID-19 Delta variant
- Challenges in operations that led to unfulfilled orders
- Company experienced decrease in retail orders that persisted longer than expected from a Canadian distributor
None of this mattered to investors who now see just round after round of excuses from the management team, which will soon be on the fake meat chopping block unless it manages to restore some hope that this company is anything but very real dog meat.