(Reuters) -Tyson Foods Inc missed Wall Street estimates for quarterly revenue on Monday, pinched by falling beef prices and lower volumes in its pork segment.
Shares of the Jimmy Dean sausages maker fell about 5% in premarket trading.
While soaring prices of beef, chicken and pork boosted sales at Tyson last year, the company reported an 8.5% drop in average sales price of beef in the reported quarter.
Wall Street analysts have said chicken prices are now trending down, with brokerage Piper Sandler noting prices of boneless, skinless chicken breast were down by about 45% in the reported quarter.
The fall in beef prices dragged Tyson’s sales at a time demand is already taking a hit from penny-pinched Americans reducing their spending on pricier meat cuts.
The U.S. meatpacker’s sales rose to $13.26 billion in the first quarter from $12.93 billion a year earlier.
Analysts on average had expected sales of $13.52 billion, according to IBES data from Refinitiv.
(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)
