Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the decline in stock for Tyson Foods following second-quarter earnings. (edited)
JULIE HYMAN: All right. Let's take a look at another mover. That is Tyson. Investors taking a bite out of the stock this morning. The shares are down some 13% on the back of earnings.
The food company cut its revenue outlook for the fiscal year and saw a surprise loss for the quarter. A lot of this has to do, it seems, with pricing and with margins, because-- it's interesting here. Average price down 3.2%. And we talk all about all the areas where companies are still taking price. This is not happening, I guess, at the wholesale level.
Beef, average price down 5.4%. Pork, down 10.3%. Chicken, rising 2%. But that is lower than some of the estimates out there.
BRAD SMITH: Yeah. And our viewers are taking a look at the core categories that you were just running through there a moment ago, here. Also in the margin side, I mean, beef-- that held up. It was up year-over-year by about 12.7%.
But I think at the end of the day, too, and where their forecasts are leading right now and the consumption patterns-- I just wonder if Tyson is seeing any impact to the growth strategy, and especially at the time where they're trying to focus more of their attention on that margin improvement. They talked about that within the shareholder letter that went out, saying that the current protein market is challenging, but believing that they have a growth strategy in place. And still, of course, bullish on the long-term outlook, as any company executive should hopefully be.
JULIE HYMAN: Exactly.