Shares of Tyson Foods Inc. fell 0.8% in premarket trading Monday, after the processed meats company reported fiscal fourth-quarter profit that missed expectation while sales rose above forecasts, as the inflationary environment weighed on margins. Net income for the quarter to Oct. 1 fell to $538 million, or $1.50 a share, from $1.36 billion, or $3.71 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.63 missed the FactSet consensus of $1.70. Sales grew 7.2% to $13.74 billion, above the FactSet consensus of $13.49 billion. Cost of sales climbed 20.3% to $12.43 billion, as gross margin contracted to 9.5% from 19.3%. Volume increased 2.1%, as beef rose 5.1%, chicken increased 1.1% and prepared foods grew 0.3%, while port fell 1.1%. Average price change rose 5.1% overall, as chicken prices jumped 18.2%^ and prepared foods increased 11.4%, while beef prices fell 8.2% and pork prices declined 1.5%. Tyson Foods stock sank 17.6% over the past three months through Friday, while the S&P 500 has lost 6.7%.
(END) Dow Jones Newswires
November 14, 2022 07:10 ET (12:10 GMT)
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