Why Tyson Foods Stock Is Trading Lower Today

Tyson Foods Inc (NYSE: TSN) shares are trading lower Monday morning after the company reported first-quarter financial results that came in below average analyst estimates. 

Q1 Results: Tyson Foods said fiscal first-quarter revenue increased 2.5% year-over-year to $13.26 billion, which missed consensus estimates of $13.52 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of 85 cents per share, which missed the average analyst estimates of $1.36 per share. 

Tyson said it ended the quarter with $2.9 billion in total liquidity after repurchasing 4.9 million shares for $313 million during the quarter. 

"We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health," said Donnie King, president and CEO of Tyson Foods.

"We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability. We expect to improve our performance through the back half of fiscal 2023 and into the future," King added.

Outlook: Tyson said it expects full-year 2023 revenue to be between $55 billion and $57 billion versus estimates of $55.14 billion.

The company also issued guidance for full-year operating margins. Beef and chicken are expected to be between 2% and 4%, pork is expected to be flat to 2%, and prepared foods are expected to be between 8% and 10%. 

Liquidity is expected to remain above the company's minimum target of $1 billion throughout 2023. 

TSN Price Action: Tyson has a 52-week high of $100.72 and a 52-week low of $59.38.

The stock was down 5% at $60.83 at the time of writing, according to Benzinga Pro.

Photo: Central Texas Food Bank from Flickr.