Tyson Foods Drops 15% After Cutting Full Year Guidance
Tyson Foods (TSN:US) shares plunged on Monday after the protein producer lowered its sales guidance for the full year.
Tyson Foods reported a surprising loss per share of $0.04 on revenue of $13.13 billion. The results were much lower than the analysts' expectations for earnings of $0.79 per share on revenue of $13.6 billion.
"While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” said Donnie King, president, and CEO of Tyson Foods, “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.”
The company’s adjusted operating margin dropped to -0.4% from the +8.8% reported year ago.
On the outlook front, the company now expects sales to value between $53 billion and $54 billion, lower than the prior forecast of $55 - $57 billion. Analysts were looking for $55.04 billion in full-year revenue.
The stock selloff following a guidance cut comes after Congressman Michael McCaul disclosed in April he was aggressively investing in Tyson Foods shares in March.
As per the filings, Rep. McCaul’s spouse and child spent hundreds and thousands of dollars to buy TSN shares while they were trading under the $60.00 mark. Similarly, Representative Daniel S. Golman and family members of Rep. Ro Khanna were also trading TSN stock in early 2023.
On Monday, shares were trading just above the $50.00 handle. Following the selloff, Tyson Foods stock is now down by almost 20.00% year-to-date.
