Tyson Foods Falls As Weak Chicken, Pork Demand Hurts Results
Tyson Foods (TSN:US) shares fell more than 9% in early Monday trading after the food company reported weaker-than-expected results for its third fiscal quarter.
Tyson reported a profit per share of just $0.15, while analysts were hoping for $0.26. Revenue fell 2.6% year-over-year to $13.14 billion, below the expected $13.59 billion.
The company recorded FQ3 sales growth of 0.3% as chicken sales volume of more than 2.8% managed to offset declining beef and pork sales volume. Still, Tyson was forced to cut its capital expenditure guidance for the full year, while adding that it will close down 4 meat processing facilities.
The full-year sales guidance of $53 billion to $54 billion is maintained while the adjusted operating margin was reported at 1.4%.
“While current market dynamics remain challenging, Tyson Foods is fully committed to our vision of delivering sustainable, top line growth and margin improvement,” said Donnie King, President and CEO, Tyson Foods.
“I’m encouraged by the improvements we made this quarter, including our Tyson Core Business lines that continue to outpace our peers in volume growth.
The company’s disappointing earnings report comes just two months after Rep. Michael McCaul purchased more TSN shares. Two weeks ago, the Congressman disclosed he bought at least $100,000 worth of TSN stock on June 05, when it closed at $50.51.
Tyson Foods shares were seen trading in the low $50s on Monday.
