Wall Street Waves Caution Flag for Tyson Foods
Reeling commodity markets continue to beat down potential earnings and the share price of Tyson Foods Inc. The meat giant’s stock set a 52-week low this week and was downgraded by several major brokerage firms because of deteriorating operating margins linked to escalating grain costs amid the worst drought in nearly 70 years.
J.P. Morgan analyst Ken Goldman, referred to this market setback as “scary times in proteinville for children of the corn,” like Tyson Foods and other meat companies that have animals to feed.
Last week Goldman downgraded Tyson shares from overweight or a buy position, to a neutral/ hold position and slashed earnings estimates for fiscal 2012 by 10%.
Goldman predicts Tyson’s total operating income for fiscal 2012 to be $1.22 billion, 5% lower than fiscal 2011. He sees operating income in fiscal 2013 sliding 6.17% to $1.149 billion. Click here to read the full story from our partners at TheCityWire.com.