- Tyson Foods posted a drop in sales, but indicated its cost-cutting measures are working, and it anticipates a rebound in the chicken and pork markets.
- The food processing giant beat earnings estimates, although revenue was short of forecasts as sales of beef and pork declined.
- Tyson's fiscal 2024 sales estimate was below estimates.
Tyson Foods (TSN) shares were 2.3% lower in early trading Monday after the giant meat processor gave a weaker-than-expected outlook, although it indicated its cost-cutting measures were working and market conditions were improving for its chicken and pork business.
Sales for beef, pork, and chicken all fell. Beef volume slumped 6.7%,?and pork volume was down 0.2%, while chicken volume rose 1.7%. Average prices for all Tyson products declined 1.4%.
The company indicated it projects fiscal 2024 revenue to be about the same as in 2023, or $52.9 billion. That was about $1.5 billion less than analysts had been expecting.?
However, Tyson said it is anticipating a rebound in demand for its chicken and pork, although beef remains challenging. It added that it is “seeing tangible benefits of our actions,” and explained that it was focused “on what we can control — including capital spend.” The company shuttered eight plants and laid off thousands of workers during the year as it moved to reduce expenditures.
Shares of Tyson Foods have lost more than a quarter of their value this year.