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