On Thursday, Beyond Inc. (NYSE: BYON) experienced a significant decline in its stock price, falling by 30% following the announcement of its third-quarter results and an Analyst Day event. In response, Piper Sandler adjusted its price target for the company’s stock, lowering it from $14.00 to $8.00 while maintaining a Neutral rating.
The Analyst Day, which coincided with the release of the company’s Q3 earnings, was deemed somewhat hurried but necessary. Since 2024, Executive Chairman Marcus Lemonis has been leading Beyond Inc. through a major business transformation, which some have found confusing, contributing to a decline in the company’s fundamentals.
During the Analyst Day event, Beyond Inc. articulated its long-term vision to become a comprehensive provider of home-related products and services, also addressing recent challenges such as a notable drop in conversion rates and gross margins. Although the strategies to improve these metrics seem reasonable, analysts assert that more time and evidence are needed to fully support the company’s long-term vision.
Piper Sandler’s revised price target of $8.00 is based on a 0.2x multiple of the company’s estimated 2025 enterprise value to sales, reflecting a more conservative growth outlook. Despite these challenges, Beyond Inc. is expected to continue efforts to realign its business and meet its long-term objectives.
In other recent developments, Beyond Inc. reported third-quarter earnings and revenue that did not meet analyst expectations. The company reported an adjusted loss per share of $0.96, with revenues totaling $311 million, marking a 16.6% decrease year-over-year. Nonetheless, Beyond Inc. experienced a 21% increase in active customers, reaching 6.0 million, though the number of orders delivered decreased by 19% year-over-year to 1.6 million.
Following these results, Needham reduced its target price for Beyond Inc.’s shares from $13.00 to $9.00 but maintained a Buy rating, expressing optimism about the company’s potential for a profitability turnaround. Meanwhile, BofA Securities downgraded Beyond Inc. to Underperform and lowered the price target to $6.00 after the disappointing third-quarter results.
BTIG maintains a Neutral stance on Beyond Inc., waiting for more evidence of the company’s progress toward its stated goals. The company also announced plans to sell its headquarters, with the transaction expected to finalize in the fourth quarter, and projected an annual $20 million reduction in staff-related expenses. Beyond Inc. anticipates reducing its fixed expense base by an annualized $65 million by 2025.
Recent InvestingPro data align with the challenges facing Beyond Inc., showing a 36.41% decline in its stock price over the past week and a 68.47% drop in the last six months. The stock is trading near its yearly low at $6.69, just 18.03% of its 52-week high. The company’s financial metrics portray ongoing difficulties, with revenue for the last twelve months as of Q3 2024 at $1.48 billion and a 6.66% decline in revenue growth. Beyond Inc.’s profitability is also under pressure, with a negative operating income of $212.64 million and a gross profit margin of 16.42%.
InvestingPro Tips highlight further concerns, indicating that the company is rapidly burning through cash, and profitability is not anticipated this year. However, Beyond Inc. does possess more cash than debt, providing some financial flexibility during its transformation.
This article was produced with AI assistance and reviewed by an editor.
