What's a "protein provider" to do? While carb-producing companies such as Krispy Kreme
The firm said that full-year earnings would come in between $1.08 and $1.15 for the year. That still represents earnings growth of 13% to 20% for the year, so why the chilly reception? Well, only last month, the folks with the keys to the nice washrooms were predicting $1.20 to $1.30. And, as W.D. Crotty pointed out at the time, the Street was expecting more.
The reasons given for Tyson's upcoming slumming were bad results from grain hedging as well as reduced demand for chicken and beef. There's not much to be done about the latter, but hedging on animals and feed through buying options, which are supposed to reduce the firm's financial risk, is another matter. It doesn't always work out. For an example of what happens to the bottom line when you make better bets, see how Smithfield Foods
While any company with a 225-page quarterly report and indecipherable hedging explanations will never make my lazy investor watch list, there may be plenty of value available right now in the meat market. Sanderson Farms
And the original SPAMer, HormelFoods
For more food industry Foolishness:
- What's more profitable than pig?
- Check out one cheap chicken hawker.
- Something's not right at Pilgrim's Pride.