By Deepta Bolaky
Tyson Foods & Skyworks Earnings Reports
Tyson Foods and Skyworks are among the two major earnings results released on Monday. The meat processor reported its quarterly results before the open while Skyworks Solutions issued its reports after market close.
Tyson Foods is one of the largest processors and marketer of chicken beef and pork. The company is considered as one of the world’s largest food companies and a leader in protein. The lockdown measures have seen temporary plant closures, reduced, member attendance, and supply chain volatility, which have forced the company to adjust its product mix and redirect products accordingly.
Tyson Foods has welcomed the actions of the government to strengthen the food supply chain and prioritising support for meat and poultry processors last week, but the company is still anticipating to operate under multiple challenges related to the pandemic which is expected to drive operating costs higher and negatively impact volumes for the remainder of fiscal year 2020.
Given the uncertainty, the Company withdrew its annual guidance and warned of shortages of protein in grocery stores across the US, mainly due to the closures of facilities and a lack of workers. Also, almost 900 employees at a processing plant in Indiana were tested positive for COVID-19. Amid a gloomy outlook for the meat market, the shortages have driven prices of protein like pork and beef higher.
The company’s share price which has remained quite resilient in the month of April tumbled by almost 8% on Monday to $55.32.
The semiconductors manufacturer is an innovator of high-performance analog semiconductors connecting people, pace and things. The company’s wireless technologies are playing a key role as the world goes remote.
The company reported earnings of $1.34 per share on revenue of $766m which came above estimates. However, Skyworks provided a weaker guidance outlook for its third quarter between $670m and $710m in revenue. Its share price struggled to find a firm direction in after-hours trading.
Walt Disney, Activision Blizzard, and Beyond Meat are among the few that are expected to report earnings on Tuesday. After the warnings of shortages by the meat giant, Tyson Foods, Beyond Meat will be on investors’ watchlist.
By Deepta Bolaky
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