Tyson Foods ( NYSE: TSN ) slips after the meat company posted a mixed Q2 earnings report. The EPS came even after Tyson utilized aggressive cost management during the quarter.
Revenue was up 8.2% during the quarter, but net income was flat from a year ago and adjusted operating income fell.
Volume was down 1.9% for the quarter, driven lower by a 8.5% decline in prepared foods and 2.1% drop in chicken. Pricing was up 8.1% during the quarter, led by a 20% pop in chicken prices to more than offset lower beef and pork prices.
Operating margin fell to 7.4% of sales from 10.8% a year ago as the beef and pork segments both saw lower margins during the quarter.
TSN said it is targeting $1B in productivity savings by the end of FY24 and more than $400M in FY22 relative to a FY21 cost baseline. The company is currently on track to achieve its planned productivity savings for FY22.
Looking ahead, Tyson Foods ( TSN ) still sees full-year sales of $52B to $54B vs. $52.8B consensus.
Shares of Tyson Foods ( TSN ) fell 2.84% premarket to $84.97 following the earnings report.
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Tyson Foods leans on cost management, higher chicken prices in Q2