Tyson Foods stock dropped 8% before trading May 4 after its quarterly report showed lower than expected earnings due to the coronavirus situation.
The company reported sales of $10.89 billion for the latest quarter, which was up 4.3% from the same quarter last year, but down 0.6% from analysts’ projections. Profits for the quarter were $364 million, down 15% from last year. Sales of beef rose by 2.7% and pork by 2%, but chicken sales fell 1.5%.
Tyson reported robust retail sales, but a slump in foodservice channels, which account for about 40% of its business. Restaurants across the country have seen business plunge as they are restricted to carryout and delivery.
The company placed the blame for its performance on the coronavirus pandemic, saying that it cannot offer guidance on future margins during the crisis. Tyson has had to close about a half-dozen processing plants due to coronavirus infection.
“The major challenge we face is the availability of team members to operate our production facilities as our production facilities are experiencing varying levels of absenteeism,” the company said in a filing.
