Shares of Tyson Foods Inc. (TSN) dropped 3.1% in premarket trading on Monday, following the release of the company’s fiscal fourth-quarter results. While Tyson Foods exceeded profit expectations, its sales figures fell short and the company also provided a cautious outlook for the full year.
Quarterly Performance
Tyson Foods reported a net loss of $450 million, or $1.31 per share, for the quarter ending September 30. This is in contrast to the net income of $538 million, or $1.50 per share, in the same period last year.
Adjusted earnings per share, excluding nonrecurring items, came in at 37 cents, surpassing the FactSet consensus of 29 cents.
However, sales declined by 2.8% to $13.35 billion, below the FactSet consensus of $13.73 billion. This decrease was primarily driven by a 1.4% drop in average prices and a 0.6% decline in volume.
Full-Year Outlook
Looking ahead to fiscal 2024, Tyson Foods expects sales to remain “relatively flat” compared to 2023. The FactSet consensus of $54.37 billion implies a modest growth rate of 2.8% from the $52.88 billion recorded in 2023.
Meanwhile, according to the U.S. Department of Agriculture, protein production in fiscal 2024 is projected to slightly decrease compared to 2023 levels.
Stock Performance
Tyson Foods’ stock has experienced a significant decline of 15.0% in the past three months, while the S&P 500 has only slipped by 1.1%.
