Tyson Foods (TSN) saw a downfall in its shares during Monday's intraday trading, as the concerns voiced by its CEO about "macro environment" during the earnings call dulled the impact of the recorded quarterly profit that surpassed projections.
Tyson's adjusted earnings per share (EPS) for its fiscal second quarter turned out to be 62 cents which is nearly twice the average estimate compiled by Visible Alpha. It reflects a turnaround for Tyson, which had declared a loss per share of 4 cents in the corresponding period last year. Despite the higher-than-expected profit, revenue declined marginally over the year by 0.5% to $13.07 billion, just shy of estimates.
Tyson forecasts however, indicate an adjusted operating loss ranging between $100 million and $400 million for its beef division for this fiscal year. Last quarter, it projected the division to witness either a breakeven or a loss of $400 million in fiscal 2024.
Additionally, Tyson anticipates other divisions doing better with its pork unit expected to report an adjusted operating income of $50 million to $150 million, and the chicken unit expected to witness an adjusted operating income between $700 million to $900 million in fiscal 2024.
Despite the mitigations, the company's CEO, Donnie King, expressed concerns that Tyson is "not immune to the macro environment". In light of this concern, the company has closed down six chicken processing facilities since the past year.
By Monday afternoon, Tyson shares had declined by 7% to $57.54.