Shares of Tyson Foods Inc. TSN dropped 3.1% in premarket trading Monday, after the processed meats company topped fiscal fourth-quarter profit expectations but missed on sales and provided a downbeat full-year outlook as overall protein production is projected to decline. The company swung to a net loss for the quarter to Sept. 30 of $450 million, or $1.31 a share, from income of $538 million, or $1.50 a share, in the year-ago period. Excluding nonrecurring items, such as plant closures and goodwill impairment, adjusted earnings per share of 37 cents beat the FactSet consensus of 29 cents. Sales fell 2.8% to $13.35 billion, below the FactSet consensus of $13.73 billion, as average prices declined 1.4% and volume was down 0.6%. For fiscal 2024, the company expects sales to be “relatively flat” with 2023, while the FactSet consensus of $54.37 billion implies 2.8% growth from the $52.88 billion in 2023 sales. Meanwhile, the U.S. Department of Agriculture indicated fiscal 2024 protein production will “decrease slightly” from 2023 levels. Tyson’s stock has dropped 15.0% over the past three months through Friday, while the S&P 500 has slipped 1.1%.
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