Beyond Meat Inc (NASDAQ:BYND) shares tumbled on Tuesday despite strong quarterly results as investors looked to take profits after the company’s 180-day IPO stock lockup expired.
The plant-based burger producer saw its share price drop nearly 20% in morning trading Tuesday to $84.71 after roughly 75% of its shares became eligible to be traded, according to CNBC.
The stock has sizzled since its May 2 public debut at just $46 per share, although the price has already fallen well off its all-time high of $239.71.
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The sell-off came despite relatively good third-quarter results, posted after the bell Tuesday, including Beyond Meat's first quarterly profit.
Net revenue more than tripled year over year $92 million to $26.3 million, topping Wall Street expectations of $82.2 million. Earnings swung positive to a $0.06 gain, from a $0.33 per share loss in 2018, surpassing analyst estimates of $0.04.
“We are very pleased with our third-quarter results which reflect continued momentum across our business and mark an important milestone as we achieved our first-ever quarter of net income,” Beyond Meat CEO Ethan Brown said in a statement.
“We remain focused on expanding our distribution footprint, both domestically and abroad, building our brand, introducing new innovative products into the marketplace, and bolstering our infrastructure and internal capabilities to fuel our future growth.”
The El Segundo, California-based company also boosted its full-year revenue outlook to between $265 million and $275 million, up from previous guidance of more than $240 million. Analysts on average are anticipating full-year revenue of $265.1 million.
Beyond Meat continues to add partners to its roster of stores and restaurants, which already includes Target, Whole Foods, Kroger, Dunkin’ Donuts, Carl’s Jr and others. On Monday, the company announced a deal with Denny’s to put a version of its Beyond Burger in its 180 Los Angeles-area locations.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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