Key Takeaways
- Tyson Foods shares slumped in intraday trading Monday as “macro environment” concerns raised by its chief executive in its earnings call offset higher-than-forecast quarterly profit.
- Tyson’s shuttering of some chicken-processing plants to cut costs helped buoy profits.
- The company, however, is forecasting adjusted operating losses of between $100 million and $400 million for its beef unit this year.
Tyson Foods (TSN) shares slumped in intraday trading Monday as “macro environment” concerns raised by its chief executive in its earnings call offset higher-than-forecast quarterly profit.
Tyson reported adjusted earnings per share (EPS) of 62 cents for its fiscal second quarter, nearly double the consensus estimate compiled by Visible Alpha, and a turnaround from the loss per share of 4 cents it registered in the same period last year. Revenue declined over the year by 0.5% to $13.07 billion, just short of forecasts.
‘Macro Environment’ Concerns
The company, however, forecast an adjusted operating loss of between $100 million and $400 million for its beef unit this fiscal year. Last quarter, it projected the unit to range from breakeven to a $400 million adjusted operating loss in fiscal 2024.
It also expects its pork division to post adjusted operating income of $50 million to $150 million in fiscal 2024 and its chicken unit to report adjusted operating income of $700 million to $900 million.
Chief Executive Officer (CEO) Donnie King said Tyson is “not immune to the macro environment” in the company’s earnings call Monday.
The company has shuttered six chicken processing facilities since last year.
Tyson shares were down 7% to $57.54 as of about 1 p.m. ET.