2023-05-08 07:14:21 ET
Tyson Foods ( NYSE: TSN ) shares fell sharply in premarket action on Monday after the company cut its full-year sales forecast.
For the fiscal second quarter reported, the Arkansas-based protein giant posted a $0.04 per share loss, surprising analysts that had anticipated $0.80 in earnings per share. Meanwhile, $13.13B in revenue missed the consensus by nearly $500M. Management noted a sharp drop in margins for both chicken and pork as factors that offset growth in prepared foods.
“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook. 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,” CEO Donnie King said. “Through our growth strategy, focus on margin improvement, and proven leadership team, I am confident in our ability to capture the opportunities in front of us and create long-term value for customers, team members, and shareholders.”
That said, the company darkened its outlook for sales in 2023 amid expected declines in beef production. The company now anticipates net sales to range from $53B to $54B, down from a prior range of $55B to $56B and well below the $55.05B consensus.
Capital expenditure forecasts were also cut from $2.5B to $2.3B as the company outlined intentions to tighten its belt and focus on cost-savings. Shares of Tyson Foods ( TSN ) fell 7.27% shortly after the earnings announcement.
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Tyson Foods stock tumbles on trimmed sales guidance