Beyond Meat earned its reputation as a company offering plant-based meat products in the U.S. but also internationally. It caters to restaurants, schools, foodservice outlets, etc., and its share price is already up a whopping 40% this year alone.
Publicly listed in 2019, it is still yet to make a new all-time high when compared to the post-IPO prices. Will the Q4 2020 earnings bring more upside or is a reversal in the cards?
When Does Beyond Meat Report Q4 Earnings?
Beyond Meat is expected to release its full fiscal year and Q4 earnings on February 25th, 2021.
Market Expectations from Beyond Meat’s Earnings Statement?
While the market expects negative earnings per share of -$0.11, the YoY revenue is expected to grow to $105 million. Any positive surprises should be welcomed by the market as the positioning is on the long side, as the YTD performance shows.
Beyond Meat Shares: Technical Analysis
The technical analysis picture looks mixed. Before interpreting the chart above, consider that this is the daily timeframe, and thus it offers the bigger perspective.
The chart above may be interpreted as either an ascending triangle or a double top. Out of the two, the chances favor the first scenario because of two clues. First, the horizontal-based, that acts as resistance, typically forming during ascending triangles. Second, the series of higher lows that the market keeps forming. Such a series is designed to put pressure against the horizontal base until the price clears resistance. On such a break, the measured move, calculated as the longer segment of the triangle projected from the horizontal base, points to much higher levels. To trade the ascending triangle, traders must first wait the Q4 earnings; then, wait for the market to break and close on a daily basis; finally, target the measured move.
The double top scenario requires the price action to break the higher lows series. Even on a negative earnings surprise, if the higher lows series remains in place, buyers will likely step in.
What Is the Outlook for the Beyond Meat Share Price?
Beyond Meat was cut to underperform at Davidson at the start of the trading month, but that did not stop the price rally. The competition also increases as McDonalds tests McPlant burgers in some European markets. While increased competition is negatively impacting revenues, the growth in the home market may be the key to Beyond Meat outperforming its rivals.