By late afternoon, shares had tumbled 9.9% to $38.45.
The company earned 60 cents a share over the quarter, 3 cents lower than analysts polled by Thomson Reuters had anticipated. The shortfall was due to weakness in its poultry business in China where domestic pork has become cheaper than imported products.
Additionally, a virus affecting hog farms in the U.S. is causing concern. The company warns pork production could be down by around 4% for the year.
Revenue of $9.03 billion exceeded analyst estimates of $8.8 billion.
TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYSON FOODS INC (TSN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
- You can view the full analysis from the report here: TSN Ratings Report