Beyond Meat shared its earnings for the second quarter on Thursday, which has caused its share prices to take a minor dip. The company posted disappointing earnings for the quarter and now, the investors are unhappy with its predictions.

Beyond Meat, Shares Plunged 1%

Beyond Meat recently shared its earnings for the quarter that ended in June, which turned out to be a disappointment for the company. It also made a prediction surrounding its workforce, which increased the negative harm to the company.

The company announced it would cut its workforce in the running year, which made the investors very unhappy. The share prices for the company experienced a 1% dip in the recent stock market trading session.

Beyond Meat has announced that going forward, they will be trimming their workforce. They have decided that in the running year, they will be reducing the workforce by 4%.

The reason behind the Reduction in the Workforce

Beyond has revealed that it was due to two major factors they had to make the difficult decision. The executives revealed that the company is going through difficult times.

Due to the difficult times, the company has to make such decisions in order to keep going. The company is in need of reducing its costs and therefore, it has to reduce its workforce and hope the situation would recover.

The executives claimed that the first major reason is interconnected with the second reason why the company is suffering.

The first reason is the uncertainty that is being witnessed in the economy, which is broader than the initial expectations.

The second reason is the rising inflation rates that have led to consumers resorting to proteins that are cheaper. This is the reason why the company is experiencing a dip in sales and demand.

Earnings Report by Beyond Meat

Beyond Meat posted that the losses they recorded were wider than expected. Even the sales they recorded were weaker than the analysts had predicted.

According to the Refinitiv analysts, the loss they expected was worth $1.18 per share. The revenue they had expected for the second quarter was worth $149.2 million.

The earnings posted by the California-based company show that it recorded a loss of $1.53 per share. While the revenue it recorded for the respective quarter was $147 million.

The posting also shows that in the second quarter, their net sales dropped to $147 million, which is a 1.6% drop compared to the 2021 quarter.

The company has also reported that the decline in sales is due to the foreign exchange rates. Then there are discounts that they had to give in the recent quarter. These discounts were really high, as reported by Beyond Meat analysts.

Beyond Meat has reported that in the running year, they want to generate revenue between $470 million and $520 million.

Previously, the company had expected revenue between $560 million ad $620 million.