Shares of Tyson Foods plunged by 13.26% due to the meat company's unexpected loss in the fiscal second quarter, causing a cut in its financial outlook. The company reported an adjusted loss of 4 cents per share, a significant contrast from the 79 cents per share profit estimated by analysts, while earnings from the same period a year ago were $2.29 per share.
In the last quarter, the company's sales were about the same as the previous year at $13.1 billion. Although beef sales dropped, chicken and prepared foods sales went up. However, Tyson lowered its revenue forecast for fiscal 2023 from $55-57 billion to $53-54 billion.
Why it matters
Despite the current challenges in the protein market, Tyson Foods remains optimistic about its long-term growth strategy, according to Donnie King, the company's CEO. In the latest earnings release, King highlighted the strong performance of the branded foods business and the company's focus on meeting customer needs. However, the recent Wall Street Journal report revealed that Tyson had to cut 15% of its senior leadership positions and 10% of corporate roles, indicating the company's struggle to navigate the tough market conditions.