- Tyson Foods Inc TSN shares are down Monday morning as its second-quarter results missed Street expectations. The company also reduced its FY23 sales outlook.
- TSN reported second-quarter FY23 sales growth of 0.12% year-on-year to $13.13 billion, missing the consensus of $13.62 billion.
- Sales volume of Beef fell 2.9% Y/Y, Pork grew 1.1%, Chicken climbed 6.4%, and Prepared Foods dropped 0.4%.
- Gross profit plunged 69% from $1.7 billion to $527 million, with the margin contracting 920 basis points to 4%.
- The company reported an operating loss of $(49) million compared to an income of $1.2 billion last year.
- In the second quarter of fiscal 2023, the company's operating result was impacted by $22 million of restructuring and related charges and $92 million of charges related to plant closures.
- Adjusted EPS of $(0.04) missed the analyst consensus of $0.80.
- The company held $543 million in cash and equivalents as of April 1, 2023.
- Adjusted EBITDA for six months decreased 64.3% to $1.2 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 president CEO Donnie King.
- Outlook: Tyson Foods cut its FY23 revenue outlook to $53 billion - $54 billion (previously $55 billion - $57 billion) versus the consensus of $55.04 billion.
- The company expects FY23 capital expenditure of about $2.3 billion (prior $2.5 billion).
- On May 3, 2023, TSN entered into $1.75 billion of new term loan facilities.
- Also Read: Tyson Foods To Cut 10% Corporate Jobs: Report
- Price Action: TSN shares are trading lower by 8.22% at $55.70 in premarket on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
