Tyson Foods Slashes Guidance: Buy On the Dip?
When facing an inflationary environment at the grocery store, people are making changes to what goes into their carts. Tyson Foods (NYSE: TSN), a leading meat producer, is feeling the effect.
Tyson's report for its fiscal second quarter, which ended on April 1, featured volume declines in the beef and prepared food segments, as well as price declines in beef and pork. Total revenue was essentially flat compared to the prior-year period, but profits collapsed. Operating income and adjusted earnings per share both crashed 84%.
Along with a weak Q2 showing, Tyson reduced its outlook for full-year sales. The company now expects to produce revenue between $53 billion and $54 billion, down from a previous range of $55 billion to $57 billion. Tyson also slashed its segment operating margin guidance for beef, pork, and chicken. The company now expects to roughly break even in each segment.
Source Fool.com
