Tyson Foods shares slip after earnings and sales miss consensus
Tyson Foods Inc. shares slid 3% in Monday premarket trading after the company reported fiscal second-quarter earnings and sales that missed expectations. Net income for the quarter was $316 million, or 85 cents per share, down from $340 million, or 92 cents per share, for the same period last year. Adjusted EPS was $1.27. Revenue totaled $9.77 billion, up from $9.08 billion year-over-year. The FactSet consensus was for EPS of $1.30 and sales of $9.88 billion. Sales of beef, chicken and prepared foods rose during the quarter, while pork sales fell. Tyson expects fiscal 2018 adjusted EPS of $6.55 to $6.70. The Factset consensus is $6.64. Domestic meat production is expected to grow 3% over fiscal 2017 with strong exports expected to absorb the increase. In a 10-Q filing, Tyson discussed the previously-announced 550 job cuts that are part of a financial restructuring program. Most of the positions will be cut in the corporate offices in Springdale, Ark., Chicago and Cincinnati. The company expects a fiscal 2018 pretax charge of about $253 million tied to the plan. Tyson shares are down 17.4$ for the year to date while the S&P 500 index is down 0.4% for the period.