Tyson Foods (TSN), the largest U.S. producer of poultry and meat, got burned during Monday's trading session after delivering a lowered outlook amid continuing drought conditions across the Midwest. At the close, the stock had shed 7.99%; it traded in a range of $14.07 to $15.46 on heavy volume throughout the day. The meat-producing king was thus crowned Monday's second-worst-performing food stock (grocery giant Supervalue (SVU) saw the largest decline in the edibles universe).
The company's fiscal 3Q earnings failed to meet analyst expectations at $76 million (or 21 cents a share), down from $196 million a year ago, and revenue of $8.31 billion, up from $8.25 billion a year ago. Analyst consensus had seen earnings at 54 cents a share on revenue of $8.72 billion. Tyson slashed its full-year revenue forecast by a billion, to $33 billion, and forecast its 2013 revenue to be $35 billion.
The worst drought seen in 56 years has led to a 50 percent jump in the price of corn at the ChicagoRead More »from Tyson Stock Burned as Outlook Lowered Amid Drought Conditions