Today, it was announced by Tyson Foods that their CEO for a number of years, Donnie Smith would be stepping down, at the end of the year. This announcement comes at the same time that the major meat producer released a profit goal for the next fiscal year. Tyson, a leader in chicken, pork, and beef products disclosed an extensive list of reports for their organization.
Their fourth quarter results ended up coming short of what was predicted by Wall Street. Sources say that their targets for the fiscal earnings in 2017 are also below expectations. They also announced that Tom Hayes would be replacing the role of Smith, who was the CEO since 2009. Hayes is currently the president of Tyson. Chairman of the board of directors for Tyson, John Tyson said this in a statement:
“Donnie is leaving the company in great hands, having developed an impressive pipeline of management talent while positioning us for continued growth and change.”
Investors don’t see it the same as John Tyson. Bloomberg analysts surveyed that Tyson’s would be estimated at $4.99 per share for the fiscal earnings in 2017, but now analysts are updating that the share value will be between $4.70 and $4.85. Smith made an announcement that the first several weeks in 2016 were “phenomenal”. Yet and still, Wall Street wanted to see more progress.
The fiscal fourth quarter of 2016 didn’t make it any better with results at $9.2 billion, down from $10.5 billion. This came from large drops in volume of their chicken, pork, and beef. They also had a drop of 15% in their average prices for beef, during the fourth quarter. This came from livestock costs being lowered and more domestic availability. Analysts were also against the joyful tone that was displayed by the executives of Tyson Foods as they delivered their prepared remarks.