Tyson Stock Slumps as Sales Miss Estimates, Outlook Disappoints
Key Takeaways
Tyson Foods (
TSN
) shares plunged Monday after the meat producer posted quarterly sales that missed analysts’ expectations and its outlook disappointed.
Tyson reported $13.1 billion in sales during the second quarter, roughly in line with its performance a year earlier and slightly below the consensus estimate compiled by VisibleAlpha. Sales volumes for nearly all types of protein except for chicken fell year-over-year, as prices rose for most categories.
Executives said on the company’s earnings call that sales would have grown as expected if not for the roughly $340 million Tyson set aside to cover an antitrust investigation settlement related to allegations of price-fixing in the pork industry, according to a filing with the Securities and Exchange Commission.
Tyson’s adjusted earnings per share of $0.92 rose from $0.62 a year ago, topping analysts’ projections.
The Arkansas-based company said it expects sales for the full fiscal year to come in flat to up 1% from 2024. Analysts were looking for about 0.8% growth, near the higher end of that range, according to Visible Alpha.
Tyson shares were down 8% in recent trading, dragging them into negative territory for the year.
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