Tyson Foods Misses on Q3 as Beef Losses Deepen

Tyson Foods reported fiscal third-quarter adjusted earnings of $0.99 per share Monday, up 9% from a year earlier but short of the $1.03 analysts had expected. Revenue was essentially flat at $13.9 billion, also below the roughly $14.1 billion consensus, as higher prices offset lower volumes.

Chicken remained the bright spot, with segment operating income rising $40 million year over year to $488 million for an 11.2% margin. Beef went the other way: the segment posted a $138 million operating loss amid tight cattle supplies, and Tyson lowered its full-year beef outlook to a loss of $500 million to $650 million.

Despite the miss, management maintained its full-year adjusted operating income outlook of $2.1 billion to $2.3 billion and still expects $1.3 billion to $1.7 billion in free cash flow.