Why Tyson Foods Slumped 10.1% on Monday
Shares of Tyson Foods (NYSE: TSN) slumped as much as 10.1% on Monday, making it a tough start to the week for the meat processing company. The owner of Tyson, Jimmy Dean, and Hillshire Farms brands reported second-quarter earnings below expectations. As of 3:04 p.m. ET, the stock is down 8.5% today.
Before the market opened on Aug. 8, Tyson Foods reported its Q2 earnings for the three months ending in June. Revenue was up to $13.5 billion compared to $12.48 billion a year ago, beating Wall Street estimates of $13.25 billion. Adjusted earnings per share (EPS) were $1.94, missing the pre-earnings estimate of $1.98. This adjusted EPS miss is likely why Tyson Foods stock is down today.
Tyson is benefiting from rising meat prices around the world, which are driving revenue growth. But investors were likely concerned to see the company's volumes drop in Q2, down 1.9% year over year. Management said this is due to labor constraints at its processing facilities, which are below pre-pandemic levels and prevented the company from fulfilling all of its demand this quarter.
Source Fool.com
