Monday was a relatively quiet day on Wall Street, with most major benchmarks seeing modest losses at midday. With key inflation and other economic data coming in the near future, investors are watching closely for signs of what the Federal Reserve might do on the interest rate and monetary policy front in the months to come.
There were some significant winners among stocks on Monday, but a couple of falling stocks also stood out. Both Catalent (CTLT +0.00%) and Tyson Foods (TSN +0.34%) were down by double-digit percentages as of midday, and both businesses face some challenges that shareholders aren't quite sure how they will solve. Below, you'll learn more of the details about what Catalent and Tyson are going to have to overcome in order to find long-term success.
Catalent makes investors wait
Shares of Catalent plunged 26% as investors reacted to troubling news from the healthcare products manufacturing specialist. Wall Street never likes to have to wait for key information, but that's exactly what Catalent made analysts and investors do Monday morning.
Catalent reported that it would have to delay its release of fiscal third-quarter financial results beyond its previously expected date of May 9. The company said it would likely need almost an additional week to get its quarterly 10-Q form filed with the U.S. Securities and Exchange Commission, setting a new date of May 15.
NYSE: CTLT
Key Data Points
Catalent explained that it had found some adjustments that it might have to make to its quarterly results related to operations at its operational facilities in Bloomington, Indiana. That discovery came just last week, and the company needs more time to review the matter before filing final numbers with the SEC.
Unfortunately, this comes less than a month after Catalent had already warned that higher costs than expected at two key large manufacturing facilities would hurt fiscal third-quarter results and could have implications for previously issued forecasts as well. Now, Catalent believes that guidance for full-year fiscal 2023 revenue and adjusted pre-tax operating earnings could fall more than $400 million. That's taking shareholders by surprise, and until they see final numbers, they're unlikely to feel entirely comfortable about Catalent's longer-term future.
Tyson leaves investors feeling hungry
Elsewhere, shares of Tyson Foods were down 15%. The maker of meat and other food products reported fiscal second-quarter financial results for the period ended April 1 that disappointed investors, most of whom had hoped for much better performance.
Tyson's quarterly numbers didn't look good. Revenue was essentially flat year over year at $13.13 billion. However, the company posted losses for the period, including an adjusted loss of $0.04 per share.
NYSE: TSN
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Digging deeper, many of Tyson's segments had mixed performance. The chicken market held up best for Tyson, with sales volumes increasing 6.4% and average prices rising 2% from year-ago levels. Prepared foods also performed reasonably well, but a 2.9% volume drop and a 5.4% lower price for beef products had a massive impact on Tyson overall. Even in chicken, poor margin movement led to weakness.
This isn't the first time Tyson has come under pressure, but the big question is whether investors are losing patience with the food company. Without decisive action to make the most of its opportunities in the industry, Tyson could remain stuck in doldrums that have left the stock essentially flat since 2015.
