- 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.
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