Tyson Foods had a worse than expected fourth quarter and the stock is tanking.
The maker of brands such as Jimmy Dean and Hillshire Farms missed on both earnings and sales against analyst estimates. On profit, the company posted $0.96 per share against projections of $1.16 per share. Sales also missed at $9.16 billion versus estimates of $9.40 billion.
“Looking forward, we will continue building this business for long-term, sustainable growth by investing in innovation, consumer insights, our brands, our customer relationships, our facilities and our people,” said Tom Hayes, president and future CEO of Tyson in the earnings release.
In addition to the earnings, Tyson announced that CEO Donnie Smith would step down and be replaced at the end of 2016 by Tom Hayes.
“The plan we have announced today will result in a smooth leadership transition that positions Tyson Foods for continued growth and innovation,” said John Tyson, the chairman of the board of directors in a press release. “The Board’s decision to name Tom CEO at this time was based on both his track record and how his skills align with the company’s strategic direction and continuing evolution.”
Following the news, the stock is down just over 14% as of 11:34 a.m. ET at $57.91 a share, a $9.45 per share drop.