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Tyson Foods stock plunges on earnings miss, reduced 2023 guidance

The Yahoo Finance Live team discusses a decline in stock for Tyson Foods after a Q2 earnings miss.

Video transcript

- It's time for a triple play, three stocks that we're watching in the final 30 minutes of trading. We have Tyson, Six Flags, and Zscaler. Let's kick it off with Tyson here.

Shares are plunging today, hitting the lowest level that we've seen since the start of the pandemic. We're looking at losses of just over 17%. Now the move lower coming after the meat producer cut its guidance for the year, higher cost, declining consumer demand.

Two big reasons for this here-- chicken, pork, and beef divisions all facing challenges. Clearly a tough time here for Tyson. It was Tyson's first quarterly loss since 2009.

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The headwinds could likely persist here for some time. We've got some commentary on the earnings call here. CFO John Tyson telling analysts that this is going to be the case, at least for the remainder of the year. Over the past year, we're looking at losses of just over 44% at Kiko here. So the fact that business might not be improving anytime soon clearly worrisome here for the company.

- Yeah, no question about that. It really is all about protein for Tyson. And chicken just is not doing well right now when you think about commodity prices there.

A few things here, you point to the rising cost here, the cost of feed rising from a year ago. They've also highlighted concerns around the avian flu too, saying key export markets remain closed. So some really, really tough headwinds there for the company.

We should say they've said, look, there's-- well, the protein market is challenged. They've got other areas they can focus on. These all strong performance in their branded food business but no way to really slice it here. When you think about Tyson, it is all about chicken and meat. And that just simply isn't doing well right now.

- Exactly, Kiko, and it's interesting to see that sort of being projected out for the entire year. And I think that was kind of the key point to highlight here. Also stagnant demand for pork, I don't know about you guys, maybe we'll get some deals on pork, personally a fan of pork. I know that's surprising.

[INTERPOSING VOICES]

- Those prices have been coming down, though, it said, to some extent. So maybe-- it's cheaper than chicken. But the other thing too I think, to point out, there when we think about earnings as a whole-- and JJ Kinahan was pointing this out this morning --when you think about Tyson's earnings is we haven't had a lot of retail earnings yet either. And as the story shifts in earnings season here, what we see for overall outlook moving forward in these different style companies that are reporting now, we're moving away from tech earnings now and getting back into what the consumer has to say. So we've seen these earnings beat but maybe that story will change as we look at the different companies over the next couple of weeks.