Tyson Foods Shares Slump As Sales Fall Below Estimates

Tyson Foods Inc. shares fell 4% in premarket trade Monday, after the chicken, beef, pork and prepared food company reported fiscal fourth-quarter sales that were below estimates. The company, which acquired Hillshire Brands earlier this year, said it had net income of $137 million, or 35 cents a share, in the quarter, down from $261 million, or 70 cents a share, in the year-earlier period. Adjusted per-share earnings came to 87 cents, ahead of the FactSet consensus of 76 cents. Sales climbed to $10.105 billion from $8.894 billion, but were below the FactSet consensus of $10.290 billion. Chief Executive Donnie Smith said the company is on track with the integration of Hillshire Brands and is expecting to meet its synergy targets of $225 million or more for fiscal 2015 and more than $500 million by the end of year three. The company is expected fiscal 2015 per-share earnings of $3.30 to $3.40. Shares have gained 21.5% in the year so far, while the S&P 500 has gained 10%.