Tyson Foods (NYSE:TSN) saw its shares suffer a sharp drop Monday after the company reported weaker-than-expected results for the first quarter. Earnings came in at 85 cents per share excluding items on revenues of $13.26 billion. Analysts expected $1.34 per share in earnings and revenue of $13.52 billion, according to Refinitiv.
Sales of $13,260 million up 2.5% from prior year. GAAP operating income of $467 million, down 68% from prior year; Adjusted operating income of $453 million, down 68% from prior year
GAAP EPS of $0.88, down 71% from prior year; Adjusted EPS of $0.85, down 70% from prior year. Total Company GAAP operating margin of 3.5%; Adjusted operating margin (non-GAAP) of 3.4%
Repurchased 4.9 million shares for $313 million. Liquidity of $2.9 billion was December 31, 2022.
Said CEO Donnie King “We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health. The strength of our retail brands, including Tyson®, Jimmy Dean®, Hillshire Farm®, and Ball Park, was demonstrated by the growth in Prepared Foods, most notably with Jimmy Dean ending the quarter at its all-time highest volume share. Our advantaged brands in advantaged categories uniquely position us to win in the marketplace.”
Tyson, based in Springdale, Ark., is one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair .
TSN shares faded in price $3.23, or 5%, to $60.80.
