WASHINGTON (dpa-AFX) - Shares of Tyson Foods Inc. (TSN) slipped 7% in extended trading session on Tuesday after the meat processor lowered its full-year 2019 adjusted earnings guidance.
The company now expects full year earnings of $5.30 to $5.70 per share, down from prior earnings forecast of $5.75 to $6.10 per share. Analysts polled by Thomson Reuters currently estimate earnings of $5.95 per share.
The company said it lowered its outlook due to short-term challenges that are negatively affecting its fourth quarter earnings. The challenges include margin compression related to a reversal of a gain on mark to market grain derivatives recognized in our third quarter, commodity market volatility, implementation of enhanced food safety initiatives, a beef processing plant fire, and slower than expected operational improvements in the Chicken segment.
'The discrete challenges we've encountered this quarter now lead us to believe we will fall short of our previously stated guidance,' said Noel White, Tyson Foods' president and CEO, 'but our outlook for fiscal 2020 remains positive as we believe some of the challenges we're experiencing are not expected to repeat, and we're expecting more favorable market conditions as well.
'Our diversified portfolio is uniquely suited to respond to dynamic and challenging market conditions, and we continue to expect better performance in fiscal 2020. We're very optimistic about our long-term potential as we focus on prepared foods growth, international growth and serving our customers.'
TSN closed Tuesday's trading at $93.29, up $0.25 or 0.27%, on the NYSE. The stock further dropped $7.23 or 7.75% in the after-hours trading.
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