JBSAY - Tyson's post-earnings plunge pulls down protein-producer peers
2023-05-08 13:17:15 ET
Tyson Foods ( NYSE: TSN ) steep slide on Monday is moving its competitors lower as well.
Shares of the Springfield, Arkansas-based Tyson Foods ( TSN ) fell sharply on Monday after posting a surprise quarterly loss and slashing full-year sales forecasts. In addition to the Q1 loss and updated sales guide that stunned the Street, margins were cut nearly across the board. Beef margin guidance was cut to a range of -1% to 1% from a prior 2% to 4% range, chicken margins were trimmed in the exact same pattern as beef before it, and pork margins were moved to a range of -2% to flat from a prior 0% to 2% expectation.
“Our hopes that earnings may have bottomed were premature,” Piper Sandler wrote in a short review of the results.
The bearish print pushed shares over 16% lower in afternoon trading, leading the stock to its lowest level in over 3 years. The commentary on inauspicious trends for protein margins rippled across peers as well with JBS SA ( OTCQX:JBSAY ) -3.15% , Bridgford Foods ( BRID ) -1.7% , Hormel ( HRL ) -1.2% , and Pilgrim’s Pride Corporation ( PPC ) -1% .
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Tyson’s post-earnings plunge pulls down protein-producer peers