Tyson Foods (NYSE: TSN) declined in pre-market trading at the time of writing on Monday after the processor of chicken, beef, and pork announced its fiscal Q3 results with its adjusted earnings falling to $0.15 per share as compared to earnings of $1.94 per share in the same period last year and fell short of consensus estimates of $0.26 per share.
The company’s sales declined by 3% year-over-year to $13.14 billion and below Street estimates of $13.63 billion.
Donnie King, President and CEO, Tyson Foods commented, “While current market dynamics remain challenging, Tyson Foods is fully committed to our vision of delivering sustainable, top line growth and margin improvement. I’m encouraged by the improvements we made this quarter, including our Tyson Core Business lines that continue to outpace our peers in volume growth.”
Looking forward, Tyson Foods expects FY23 revenues to be in the range of $53 billion to $54 billion while adjusted operating margin is likely to be between 8% and 10%. The company stated that the United States Department of Agriculture (USDA) expects domestic production of beef and chicken to decline by around 3% each in FY23. In contrast, pork production is projected to be flat.
Analysts remain sidelined about TSN stock with a Hold consensus rating based on one Buy, five Holds, and two Sells.
