Tyson Foods (NYSE:TSN) stock sank over 11% in pre-market Monday trading after it reported an unexpected second-quarter loss due to rising costs and weaker prices and cut its full-year sales guidance.
Arkansas-based Tyson, one of the world’s largest food companies, reported flat sales of $13.1 billion for the three months to March 31, 2023, below the consensus estimate of $13.6 billion. Adjusted operating income sank 94% to $65 million and it swung to an adjusted loss per share of $0.04, down from adjusted income of $2.29 in 2Q 2022. Wall Street analysts had expected earnings of $0.80 per share.
Beef and pork sales were affected by weaker pricing, while beef volumes were also down for the quarter. It expects beef production for the year to be down 4%, with flat pork production.
"While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” the company’s president and CEO Donnie King said in a statement. “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.”
The company now expects full-year 2023 sales of $53 billion to $54 billion, down from February’s guidance for sales of between $55 billion and $57 billion.
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