Tyson Foods ( NYSE: TSN ) stock fell sharply on Monday as its fiscal first quarter earnings missed the mark by a wide margin.
The Arkansas-based protein producer posted $0.85 in earnings per share for Q1 20223, an over 70% drop from the $2.87 recorded in Q1 2022, and $13.26B in revenue, a modest increase from the prior year quarter. Analysts had anticipated significantly higher figures, with EPS and sales anticipated to hit $1.37 and $13.51B, respectively.
Significant decreases in operating income from the beef and pork segments were noted in the results, offsetting stronger performance in prepared foods. Operating margins for pork and beef fell from 10.1% and 19.1% in Q1 2022 to -1.4% and 3.5%to start fiscal 2023.
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability,” CEO Donnie King said. “We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry.”
For fiscal 2023, the company’s guidance remains unshaken. Management still sees sales to range from $55B to $57B, suggesting upside to the $55.14B analyst estimate. Additionally, New operational efficiency efforts are expected to provide for $1B in savings by the end of fiscal 2024.
Tyson Foods ( TSN ) shares slumped 5.51% shortly after the earnings results were announced .
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Tyson stock tumbles as profits plummet year over year