Credit Suisse calls Tyson’s first-quarter results ‘poor in every way’
Biggest beef giant Tyson Foods on Monday reported lower fiscal first-quarter earnings compared to last year, indicating a sharp decline in beef prices and lower demand for pork.
The company reported adjusted earnings per share of $0.85, well below Wall Street estimates — analysts polled by Refinitiv had expected $1.34 per share. Sales rose 2.5% quarterly to $13.26 billion but also fell short of analysts’ estimate of $13.52 billion.
“We ran into some issues in the first quarter,” Tyson CEO Donnie King said in a statement released alongside the results. “Market dynamics and some operating inefficiencies have impacted our profitability.”
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| TSN | TYSON FOODS INC. | 61.08 | -2.95 | -4.61% |
SUBWAY CEO PREDICTS 2023 WILL PROVIDE ‘RELIEF’ OF PRICING PRESSURE FOR CONSUMERS: WE ARE GOING THROUGH THE ‘WORST PART’
Tyson reported an 8.5% year-on-year decline in beef prices in the first quarter, while operating margins in its largest meatpacking segment fell to 3.5% from 19.1% a year earlier.
Meanwhile, pork sales fell 7.4% year on year while prices rose 1.4%.
BANK OF AMERICA ‘STILL FORECASTS’ 2023 RECESSIONS: Fed’s ACTION ‘NOT ENOUGH’, Chief Executive Warns
Although Tyson’s chicken prices rose 7.1% in the first quarter, the company cut its operating margin forecast for the segment to 2-4% from 6% to 8%.
Credit Suisse said in a note after the earnings report that the results were “poor all around,” but King was optimistic.
CLICK HERE CLICK FOX BUSINESS ON THE ROAD
“We look forward to improving our performance in the second half of fiscal 2023 and beyond as we strive for excellence and work to become best-in-class in our industry,” Tyson’s chief executive said.
Reuters contributed to this report.
Credit: www.foxbusiness.com /