Tyson Foods Inc., the largest U.S. meat processor, fell the most in more than two months after cutting its full-year revenue forecast and posting quarterly earnings that missed analysts’ estimates as feed costs rose.
The shares dropped 4.9 percent to $23.70 at 9:59 a.m. in New York after earlier falling 6.2 percent, the most intraday since Feb. 26. Revenue in the fiscal year through September will be about $34.5 billion, the Springdale, Arkansas-based company said today in a statement. In February, it forecast $35 billion.
Earnings excluding one-time items were 36 cents a share in the three months through March 30, compared with the 45-cent average of 11 estimates compiled by Bloomberg. Sales rose 1.8 percent to $8.42 billion, trailing the $8.57 billion average of 11 estimates.
Tyson said it sees higher chicken-feed costs in the full fiscal year. The 2012 drought in the U.S., which led to higher grain costs, is also leading to increased costs for hog and cattle producers, it said. Tyson predicts a decline of as much as 3 percent in fed cattle and a drop in beef exports.
“Our EPS for the quarter wasn’t at the level we’d like, but on an adjusted basis, we’re about where we were at this point last year,” Chief Executive Officer Donnie Smith said in the statement. “I’m still confident our results for 2013 will be better than 2012.”