Categories AlphaGraphs, Earnings, LATEST, Retail

Tyson Foods tumbles in pre-market on weak second quarter results

Tyson Foods (TSN) that specializes in chicken products missed earnings and sales estimates in its second quarter sending the shares down 6% during the pre-market trading hours. The company posted revenues of $9.77 billion, up 7.6% from $9.08 billion. This was much lower than the consensus estimate of $9.83 billion.

Several companies in their recent earnings have highlighted how increased freight costs bruised their performance. Like other companies, Tyson Foods has also been vocal about the increase in transportation costs.

Early this year, Tyson’s chief executive Tom Hayes said the company expects to pay an additional $200 million towards freight costs this year. He also indicated a rise in meat prices for the U.S. consumers due to the rising freight and rising labor costs.

Tyson Foods Earnings Infographic
Tyson Foods Q2 2018 Earnings Infographic

 

Tyson, who invested $2 million last week in Future Meat Technologies, an Israel-based company to develop lab-grown meat, said its profit fell to $315 million, or $0.85 per share, lower than $340 million, or $0.92 per share registered a year earlier.  Excluding items, Tyson Foods earned $1.27 per share, up 26% from last year.

The consumer demand for the Arkansas-based company’s products remains high, as it reported an increase in sales in the beef, chicken and prepared foods segments with registering a sales growth of 10.6% in the Prepared Foods segment. However, the Pork segment declined close to 2% during the quarter.

Prepared Food segment’s sales were boosted by the acquisition of AdvancePierre Foods Holdings, which the company completed last year. The $4.2 billion deal helped the maker of Jimmy Dean sausages to expand its Prepared Food unit portfolio.

For the full year, the company targets its adjusted EPS to be in the range of $6.55 and $6.70, which represents a growth of 23-26% from fiscal 2017.

“We’ve built a strong foundation of sustainable growth that positions us well for the second half of the fiscal year and beyond.  We’re outpacing the food and beverage industry today – and looking ahead, we’ll keep challenging the status quo and drive growth across our iconic brands,” said CEO Hayes.

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top