Tyson Foods Inc (TSN)

Tyson Foods Inc (TSN) stock plummeted by 5.68% due to stretched consumers becoming pickier in the grocery aisles, leading to a weaker third-quarter projection from the meat giant.

• Factors Influencing Weaker Guidance: The company posted mixed earnings results and projected a weaker Q3, citing a challenging environment for consumers. CEO Donnie King highlighted consumer pressure due to inflation across various sectors, including housing and utilities. Limited beef cattle availability and higher commodity costs also contributed to the weaker guidance.
• Analyst Insights: CFRA analyst Arun Sundaram noted that lower-income consumers were feeling more stretched, affecting spending habits. This sentiment was echoed by other companies like McDonald's, indicating a broader trend. Sundaram also highlighted Tyson's cautious tone for the typically strong third quarter.
• Performance Metrics: Tyson reported a 1.5% drop in overall volumes in the second quarter, with varying changes across its product segments. Prepared foods saw modest volume growth, but there was a decline in chicken sales as the company closed facilities and adjusted its demand model.
• Consumer Behavior Shifts: Consumer behavior reflected a move towards cooking at home and utilizing leftovers, impacting Tyson's retail channel. There was also a shift away from fine dining to more casual options, leading to slight market share loss for Tyson among lower-income households.

Tyson Foods, Inc. Stock (TSN) dropped by 2.83% from $46.95 to $45.62 in the trading on Monday November 13, 2023. The reasons why TSN stock down today include:

• Mixed FQ4 earnings report: Tyson Foods reported mixed results for its fourth quarter of fiscal 2023, with revenue falling 2.8% year-over-year to $13.35 billion, missing analyst expectations of $13.71 billion. The company's operating margin contracted sharply from 6% in the year-ago quarter to 1.8%, driven by lower pricing and volume declines in the beef and pork segments.
• Weak revenue outlook: Tyson Foods provided a cautious outlook for 2024, expecting revenue to be relatively flat compared to 2023. Adjusted operating income is expected to fall in a range of $1.0 billion to $1.5 billion. The company also expects capital expenditures between $1.0 billion and $1.5 billion for FY24. Tyson Foods' outlook for 2024 is conservative, reflecting ongoing challenges in the meatpacking industry. The company is focused on cost control and operational efficiency to mitigate these challenges.

In the most recent quarter, Western Digital (WDC) reported a loss of $1.37 per share, exceeding the Zacks Consensus Estimate of a loss of $1.55 per share. This is a decline from earnings of $1.65 per share in the same quarter last year.

https://finance.yahoo.com/news/western-digital-wdc-reports-q3-212509543.html

The second-quarter earnings report of the biggest poultry producer in the world revealed disappointing results, causing the company to lower its full-year guidance. The adjusted operating margin decreased significantly from 8.9% to a mere 0.5%. https://www.fool.com/investing/2023/05/08/why-tyson-foods-stock-tumbled-today/#:~:text=What%20happened,cut%20its%20full%2Dyear%20guidance.