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Beyond Meat Inc. shares fell in after-hours trading Monday despite an earnings report that showed the company’s first quarterly profit in history.
The meat-substitute company reported a third-quarter profit of $4.1 million, or 6 cents a share, on sales of $92 million, up from a loss of $9.3 million on revenue of $26.3 million in the same quarter a year ago. The analyst consensus called for profit of 4 cents a share on sales of $82.2 million, according to FactSet.
The company also increased its annual revenue forecast for the second consecutive quarter, and now expects full-year sales of $265 million to $275 million. In July, the company raised its target to $240 million from $210 million.
Beyond Meat BYND, +4.56% shares, which rampaged to more than $200 in July after an initial public offering in May that priced shares at $25 apiece, fell more than 5% in late trading immediately after the report hit. The stock has retreated since the last earnings report, when Beyond Meat announced a secondary stock offering that eventually sold insiders’ shares for $160 apiece.
Shares have declined 55% in the past three months since that announcement, but closed Monday with a 4.6% increase at $105.41, which gave the company a market capitalization of about $6.4 billion. In late trading, shares fell lower than $100 a share.
Since the July report, Beyond Meat has announced new leadership including a chief operating officer who previously worked for Tesla Inc. TSLA, -0.13% and a new chief marketing officer from Coca-Cola Co. KO, -0.33% . In summing up the results released Monday, Chief Executive Ethan Brown focused on the logistical and branding opportunities with which those executives will be tasked.
“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,” Brown said in prepared remarks.
Beyond Meat executives plan to hold a conference call at 1:30 p.m. Pacific time today to discuss the results.
