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Tyson Foods
stock soured on Monday after the company reported earnings and revenue below Wall Street’s expectations, with the closure of chicken facilities delivering a significant quarterly impairment charge.
Tyson
(ticker: TSN) reported earnings of 15 cents a share from revenue of $13.1 billion in the three months to the start of July, falling short of the 26-cent per-share profit and $13.6 billion revenue expected among analysts surveyed by FactSet.
“While current market dynamics remain challenging, Tyson Foods is fully committed to our vision of delivering sustainable, top line growth and margin improvement,” Donnie King, the group’s CEO, said in a statement.
Tyson reported an impairment charge of $210 million in its chicken business, no paltry hit to profits. Even the pluckiest investors may be finding that tough to digest in a set of results with few bright spots. Earnings per share were down 92% from a year earlier.
“The difficult decision to close four chicken facilities in North Little Rock, Arkansas;, Corydon, Indiana; Dexter, Missouri; and Noel, Missouri, demonstrates our commitment to bold action and operational excellence as we drive performance, including lower costs and improving capacity utilization, and build on our strategy of making Tyson Foods stronger in the long-term,” King said.
Shares in Tyson, which produces meat products including Ball Park hot dogs, were down 8.6% in morning trading, putting the stock on track for its largest daily percentage decrease since its most recent previous earnings release, in May.The
S&P 500
was up 0.6%.
Write to Jack Denton at [email protected]
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