On Wednesday, Beyond Inc. (NYSE: BYON) saw its price target reduced by Maxim Group from $50.00 to $36.00, while the firm maintained a Buy rating on the stock. The adjustment follows the company's first-quarter 2024 earnings report released on May 6, which showed net revenue in line with guidance, but slightly below consensus. Additionally, the company reported wider-than-expected losses in both EPS and adjusted EBITDA.
Beyond Inc. did not reiterate its 2024 revenue guidance of $2 billion, which had been deemed aspirational, with the consensus estimate closer to $1.8 billion. Executive Chairman Marcus Lemonis, known for his role in "The Profit," highlighted a strategic shift towards increased investments in brand launches and customer acquisitions. This update came alongside a guidance for second-quarter revenue to remain flat sequentially, falling short of market expectations.
In response to the first-quarter results and management's commentary, Maxim Group has significantly lowered its second-quarter 2024, full-year 2024, and 2025 estimates for Beyond Inc. The firm cited challenges such as inflation and higher interest rates, which have dampened demand for home products.
Despite these headwinds, Maxim Group expressed confidence in the new management's ability to rejuvenate the company's well-known brands, including Bed Bath & Beyond, Overstock (NYSE:BYON), and Zulily. The optimism is sustained even after a sluggish start to the year, as evidenced by the firm's decision to maintain a Buy rating on Beyond Inc.'s shares.
InvestingPro Insights
Amidst Beyond Inc.'s (NYSE: BYON) challenges, real-time data and analysis from InvestingPro provide a deeper look into the company's financial health and stock performance. With a market capitalization of $755.51 million, Beyond Inc. is navigating through a period marked by significant revenue contraction, with the last twelve months as of Q1 2024 showing a decline of nearly 12% in revenue. Despite this, the company's gross profit margin stands at 18.35%, indicating some resilience in its ability to control the cost of goods sold relative to sales.
InvestingPro Tips highlight that Beyond Inc. holds more cash than debt, which may offer some financial flexibility in these turbulent times. However, the stock's high volatility is evident, with a 44.34% decline in the past month and a 29.7% drop over the last three months, reflecting investor concerns. Analysts have also revised their earnings downwards for the upcoming period, which could signal further challenges ahead.
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