Tyson Foods Cuts FY18 Adj. Earnings Outlook – Quick Facts
Tyson Foods, Inc. (TSN) announced the company now expects adjusted earnings for fiscal year 2018 to approximate $5.70-6.00 per share. Previously, the company had expected adjusted earnings per share of $6.55-6.70.
The company said the primary drivers for the guidance update are: uncertainty in trade policies and increased tariffs; increased volatility in the commodity markets; sluggish domestic chicken demand; and pork margin compression driven by an imbalance in supply and demand. Also, Tyson Foods now expects the benefit from tax reform of about $0.77 per share compared to its previous projection of $0.85 per share.
“Through pricing and aggressive cost management, we’re working to stabilize the impact of freight and feed ingredient costs; however, we still face pressure on chicken sales volume and pricing due to the abundance of relatively low-priced beef and pork on the market. We are working to mitigate these pressures, but our fourth quarter is off to a slower than expected start driven primarily by market related factors,” said Tom Hayes, Tyson Foods CEO.
Shares of Tyson Foods were down 6% in pre-market trade on Monday.
by RTTNews Staff Writer
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