Tyson Foods moves to 2Q loss, weighed down by charges

By AP News

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Tyson Foods posted a loss in its fiscal second quarter, its first quarterly loss since 2009, and cut its sales forecast as its performance was weighed down by hefty charges related to plant closures and restructuring

Tyson-Results

Tyson Foods posted a loss in its fiscal second quarter, its first quarterly loss since 2009, and cut its sales forecast as its performance was weighed down by hefty charges related to plant closures and restructuring.

Shares slid more than 9% before the market open on Monday.

The Springdale, Arkansas-based company, whose brands include Jimmy Dean, Hillshire Farm, Ball Park and its namesake, lost $97 million, or 28 cents per share, for the three months ended April 1. A year earlier it earned $829 million, or $2.28 per share.

Taking out plant closure-related charges and restructuring charges, it lost 4 cents per share.

The performance surprised Wall Street, with analysts polled by Zacks Investment Research predicting a profit of 81 cents per share.

Revenue was basically flat at $13.13 billion. That's below Wall Street's estimate of $13.6 billion.

“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” said Donnie King, president and CEO of Tyson Foods, in a statement. “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.”

Tyson Foods Inc. now anticipates fiscal 2023 revenue of $53 billion to $54 billion. Its previous forecast was for revenue between $55 billion and $57 billion.

Analysts surveyed by FactSet expect revenue of $55.19 billion.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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