Shares of Tyson Foods (ticker: TSN) are experiencing a decline on Monday following the meat company's disappointing quarterly sales numbers and weak outlook.
In the fourth quarter, Tyson reported adjusted earnings of 37 cents per share, surpassing Wall Street's estimate of 29 cents. However, this figure marks a significant decrease from the $1.63 per share recorded in the same quarter last year.
Furthermore, the company's revenue of $13.3 billion fell short of expectations, which were set at $13.7 billion. Fourth-quarter volume experienced a 0.6% decline compared to the previous year, while the average price decreased by 1.4%.
In terms of segment performance, volume within the beef segment dropped by 6.7%, although the average price rose by 10.2%. Within the chicken segment, volume increased by 1.7%, while prices dropped by 9.2%.
Despite these challenges, President and CEO Donnie King remains optimistic about the company's direction, stating, "While economic headwinds persist, we are moving in the right direction and managing what we can control."
Looking ahead to fiscal 2024, the United States Department of Agriculture projects a slight decrease in domestic protein production (including beef, pork, chicken, and turkey) compared to fiscal 2023 levels. As a result, Tyson is updating its outlook for its segments.
The company anticipates sales to remain relatively flat in fiscal 2024 compared to the $52.88 billion in sales recorded in 2023. However, analysts have projected an increase to $54.37 billion.
As of premarket trading, Tyson stock has declined by 3.4% to $45.35.