stock was dropping Monday after the meat giant reported first-quarter earnings and sales that missed Wall Street estimates.
(ticker: TSN) posted adjusted earnings of 85 cents a share on sales of $13.26 billion, compared to earnings of $2.87 a share on sales of $12.93 billion last year. Analysts surveyed by FactSet were expecting earnings of $1.31 a share on sales of $13.52 billion.
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability,” Chief Executive Donnie King said in a press release.
Tyson saw a drop in revenue in both its beef and pork segments in the quarter. Beef sales were $4.72 billion, a decline from $5 billion last year. Pork sales of $1.53 billion fell from $1.63 billion last year. The sales declines are anticipated to continue into the full year.
“For fiscal 2023, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should be relatively flat compared to fiscal 2022 level,” Tyson said. The company anticipates adjusted operating margin for beef to decrease from “historically high levels” in 2023.
Tyson also expects fiscal 2023 sales to be between $55 billion and $57 billion. Analysts surveyed by FactSet anticipate sales to be $55.19 billion.
Shares of Tyson dropped 5% in premarket trading Monday to $60.86.
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