Tyson Foods Inc. (TSN) posted weaker-than-expected first quarter earnings Monday amid a pullback in beef prices that offset gains in chicken sales for the world's biggest food producer.
Tyson Foods said adjusted earnings for the three months ending in March, the group's fiscal second quarter, were pegged at 85 cents per share, down 70.4% from the same period last year and well shy of the Street consensus forecast of $1.34 per share. Group revenues, Tyson said, rose 2.55% to $13.26 billion, again missing analysts' forecast of a $13.52 billion tally.
Beef prices were down 8.5%, Tyson said, outpacing the 5.6% decline in segment revenues, which came in at just over $5 billion. Chicken sales rose 9.6% to $4.26 billion while pork sales were down 6% to $1.53 billion.
Looking into the 2023 financial year, Tyson Foods said its sees revenues of between $55 billion and $57 billion, with around $2.5 billion in planned capital spending.
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability," said CEO Donnie King. "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.”
“We are optimistic about the long-term outlook for Tyson," King added. "We have the world’s greatest protein brands, an incredible team, and a sound strategy to serve our customers and delight consumers with high-quality, sustainable, affordable protein.”
Tyson Foods shares were marked 5.6% lower in early Monday following the earnings release to change hands at $60.47 each, a move that would extend the stock's six month decline to around 24.5%.
