Over the last four quarters, the company has surpassed consensus EPS estimates four times. Tyson, which belongs to the Zacks Food - Meat Products industry, posted revenues of $13.07 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $13.07 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbe ...

Group 1 - Tyson Foods reported a profit exceeding market expectations due to increased chicken sales offsetting losses in the beef segment [1] - For Q2 of fiscal year 2025, Tyson's revenue was $13.07 billion, flat year-over-year and below market expectations; earnings per share reached $0.92, a 48% increase from the previous year, surpassing analysts' average forecast of $0.80 [1] - Adjusted operating profit grew nearly 27% year-over-year to $515 million, primarily driven by chicken sales growth [1] Group 2 - Tyson's beef segment reported a loss of $149 million (excluding special items), marking the sixth consecutive quarter of losses for this segment due to rising cattle costs that could not be passed on to consumers [2] - The adjusted operating profit for the chicken segment was $312 million, outperforming analyst expectations [2] - The average loss per cattle for beef packers reached $115.97, the highest since at least 2014 [2] Group 3 - The free cash flow generated in the first six months of fiscal year 2025 was lower than the same period last year [3]

Financial Data and Key Metrics Changes - Second quarter adjusted operating income increased by more than $100 million or 27% year-over-year, with a margin expansion of 70 basis points [9][23] - Adjusted earnings per share grew by 48%, reflecting improved operating performance and strategic execution [9][23] - Enterprise sales for the second quarter were $13.1 billion, which included a reduction of $343 million or 2.6% related to a legal contingency accrual primarily in pork [23][24] Business Line Data and Key Metrics Changes - **Prepared Foods**: Sales were in line with last year, with adjusted operating income increasing nearly 5% and margin improving by 50 basis points [24][25] - **Chicken**: Achieved the best second quarter adjusted operating income in nine years, with a nearly 95% increase compared to the same quarter last year [16][26] - **Beef**: Sales increased primarily due to a higher average price per pound, but adjusted operating income declined due to spread compression [27] - **Pork**: Adjusted operating income increased by 67%, reflecting the strongest second quarter result in the past three years [18][28] Market Data and Key Metrics Changes - 71% of U.S. consumers sought to increase their protein consumption in 2024, indicating robust demand for meat products [10][11] - U.S. meat sales at retail hit an all-time high in 2024, with meat included in nearly 90% of home-cooked dinners [11] Company Strategy and Development Direction - The company is focused on operational excellence, customer and consumer obsession, and capital allocation to drive long-term value [19][32] - A multi-year plan is in place to optimize operations, launch innovations, and expand distribution, particularly in the Prepared Foods segment [13][19] - The company is transitioning to a new logistics and distribution infrastructure, which is expected to generate around $200 million in annual savings upon completion [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment, emphasizing the importance of their multi-protein, multi-channel portfolio [9][44] - The company anticipates sales growth to be flat to up 1% year-over-year, with adjusted operating income expected between $1.9 billion and $2.3 billion [30][32] - Management acknowledged challenges in the beef segment but remains optimistic about the overall business performance [44][106] Other Important Information - The company is committed to eliminating petroleum-based synthetic dyes from its products, with completion expected by May [21][22] - A new Chief Growth Officer, Christina Lambert, has been appointed to lead strategic initiatives [33][34] Q&A Session Summary Question: Why did the company not raise guidance for the full year despite beating consensus expectations? - Management indicated that while results were strong, they are cautious due to uncertainties in the beef market and consumer pressures, reaffirming guidance for the year [41][46] Question: What is the outlook for chicken demand? - Management remains optimistic about chicken demand, citing strong performance and a commitment to maintaining market share, despite some uncertainties in the industry [49][51] Question: Can you elaborate on the changes in cold storage facilities and expected savings? - Management explained that the transition to new cold storage facilities is aimed at reducing costs and improving efficiency, with expected annual savings of $200 million [56][62] Question: What are the expectations for the international business? - Management highlighted improved operational fundamentals and execution of a commercial growth strategy, leading to strong performance in the international segment [95][96] Question: How does the company view the impact of tariffs on trade flows? - Management does not expect global protein consumption to change significantly but anticipates temporary disruptions as trade flows adjust [121]

Supplemental Information Q2 Fiscal 2025 May 5, 2025 Forward-Looking Statements Certain information in this presentation constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2025, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, r ...

Financial Performance - Sales increased by 1.2%, or $306 million, in the first six months of fiscal 2025, driven by higher sales in the Beef and Chicken segments, despite a 2.6% decline in the second quarter due to $343 million in legal contingency accruals[133] - Operating income for the second quarter of fiscal 2025 was $100 million, down 68% compared to the same period in fiscal 2024, primarily due to lower income in the Beef and Pork segments[133] - Operating income for the first six months of fiscal 2025 was $680 million, up 25% compared to the first six months of fiscal 2024, supported by higher income in the Chicken segment[135] - Net income attributable to Tyson for the second quarter of fiscal 2025 was $7 million, down from $145 million in the same period of fiscal 2024, resulting in a diluted earnings per share of $0.02 compared to $0.41[161] - Total sales for the second quarter of fiscal 2025 were $13.074 billion, slightly up from $13.072 billion in the second quarter of fiscal 2024, with total sales for the first six months reaching $26.697 billion, compared to $26.391 billion in the prior year[163] Segment Performance - The Beef segment reported sales of $5.196 billion for the second quarter of fiscal 2025, an increase of 4.9% from $4.954 billion in the same quarter of fiscal 2024, while the operating loss for this segment was $258 million[170] - The Pork segment experienced a sales decline of 16.3% to $1.244 billion in the second quarter of fiscal 2025, with an operating loss of $195 million, compared to a loss of $1 million in the same period of fiscal 2024[172] - The Chicken segment's sales increased by 1.9% to $4.141 billion in the second quarter of fiscal 2025, with operating income rising to $262 million from $158 million in the same quarter of fiscal 2024[175] - Prepared Foods segment sales decreased slightly to $2.396 billion in the second quarter of fiscal 2025, down from $2.404 billion in the same period of fiscal 2024, with operating income increasing to $244 million[177] Cost and Expenses - Cost of sales increased by $268 million in the second quarter of fiscal 2025, driven by higher input costs, particularly an increase of approximately $470 million in cattle costs in the Beef segment[146] - Selling, general and administrative expenses decreased by $131 million in the second quarter of fiscal 2025, primarily due to lower marketing and employee costs[149] - The company recognized $343 million pretax related to legal contingency accruals in the second quarter of fiscal 2025, impacting net income significantly[164] Cash Flow and Liquidity - Cash provided by operating activities for the first six months of fiscal 2025 was $846 million, a decrease of $331 million compared to the first six months of fiscal 2024[184] - Net cash used for investing activities was $414 million for the first six months of fiscal 2025, compared to $621 million in the same period of fiscal 2024[187] - At March 29, 2025, total liquidity was $3.242 billion, including cash and cash equivalents of $992 million and a revolving credit facility of $2.25 billion[189] - The company intends to pay current debt of $896 million with existing cash balance and cash generated from operating activities[192] Debt and Interest - The current ratio was 1.7 to 1 at March 29, 2025, down from 2.0 to 1 at September 28, 2024, primarily due to decreased cash and increased current debt[201] - The company had variable rate debt of $781 million with a weighted average interest rate of 6.2% as of March 29, 2025, and a hypothetical 10% increase in interest rates would raise annualized interest expense by approximately $5 million[216] - The company reported fixed-rate debt of $8,287 million with a weighted average interest rate of 4.8% as of March 29, 2025, and a hypothetical 10% decrease in interest rates would increase the fair value of this debt by approximately $240 million[217] - The company is required to maintain a minimum interest expense coverage ratio as part of its debt covenants[204] - The company is in compliance with all debt covenants as of March 29, 2025, and expects to maintain compliance[204] Market and Economic Conditions - The company plans to continue analyzing the impact of supply chain and tariff changes on pricing and demand for its products in the coming months[137] - The company continuously evaluates macro-economic conditions, including inflationary pressures and rising interest rates, which could impact its operations and financial results[208] - The company has foreign exchange exposure primarily from receivable and payable balances in currencies such as the Brazilian real and the British pound, with a hypothetical 10% change in foreign exchange rates impacting pretax income by $24 million as of March 29, 2025[219] Operational Initiatives - The company initiated a network optimization plan, incurring $43 million in charges in the second quarter and $116 million in the first six months of fiscal 2025, aimed at optimizing global operations[140] - The Beef segment faced limited supply of market-ready cattle and increased costs, while the Chicken segment benefited from reduced feed ingredient costs[136] - The company uses derivative financial instruments to manage commodity price risks, with sensitivity analyses indicating potential changes in fair value due to market price fluctuations[214]

Financial Performance - Sales for the second quarter of 2025 were $13,074 million, flat compared to the prior year, with legal contingency accruals reducing sales by $343 million, or 2.6%[6] - Adjusted operating income for the second quarter increased by 27% to $515 million, while GAAP operating income decreased by 68% to $100 million[6] - Adjusted net income per share attributable to Tyson was $0.92, up 48% from the prior year, while GAAP EPS was $0.02, down 95%[6] - Total company adjusted operating margin was 3.8% for the second quarter, compared to 3.1% in the prior year[8] - Sales for the three months ended March 29, 2025, were $13,074 million, a slight increase from $13,072 million in the same period last year, resulting in a sales growth of 1.2% for the six months ended[23] - Gross profit for the three months ended March 29, 2025, was $600 million, with a gross profit margin of 4.6%, down from 6.6% in the same period last year[23] - Operating income decreased to $100 million for the three months ended March 29, 2025, compared to $312 million in the same period last year, reflecting an operating margin of 0.8%[23] - Net income attributable to Tyson for the three months ended March 29, 2025, was $7 million, a significant decrease from $145 million in the same period last year, resulting in a net income margin of 0.1%[23] - The total adjusted operating income for the six months ended March 29, 2025, was $1,174 million, up from $817 million for the same period in 2024[36] - Tyson Foods' EBITDA for the six months ended March 29, 2025, was $1,391 million, compared to $1,273 million for the same period in 2024, reflecting a year-over-year increase of 9.3%[38] Future Projections - For fiscal 2025, Tyson anticipates total company adjusted operating income between $1.9 billion and $2.3 billion[15] - The company expects sales to be flat to up 1% in fiscal 2025, including the $343 million reduction due to legal contingency accruals[16] - Capital expenditures are projected to be between $1.0 billion and $1.2 billion for fiscal 2025[17] - Free cash flow is expected to be between $1.0 billion and $1.6 billion for fiscal 2025[20] - The adjusted effective tax rate is expected to approximate 25% for fiscal 2025[21] Cash Flow and Liquidity - Liquidity as of March 29, 2025, was $3.2 billion, expected to remain above the minimum target of $1.0 billion[19] - Cash provided by operating activities for the six months ended March 29, 2025, was $846 million, down from $1,177 million in the same period last year[27] - Cash and cash equivalents at the end of the period were $992 million, a decrease from $2,182 million at the end of the previous period[27] - Operating cash flow for the six months ended March 29, 2025, was $846 million, down from $1,177 million for the same period in 2024, representing a decrease of approximately 28.2%[40] - Free cash flow for the six months ended March 29, 2025, was $382 million, a decline of 31.3% compared to $556 million for the same period in 2024[40] Debt and Assets - Total assets decreased to $36,280 million as of March 29, 2025, from $37,100 million as of September 28, 2024[25] - Current liabilities increased to $5,494 million as of March 29, 2025, compared to $4,787 million as of September 28, 2024[25] - Tyson Foods' total gross debt as of March 29, 2025, was $9,787 million, with a net debt of $8,060 million[38] - The ratio of gross debt to EBITDA was reported at 3.4x for the six months ended March 29, 2025, compared to 3.0x for the previous year[38] Operational Insights - The company incurred $343 million in legal contingency accruals during the second quarter of 2025, significantly impacting net income[34] - The network optimization plan charges amounted to $116 million for the six months ended March 29, 2025, contributing to the overall operating income adjustments[36] - The company reported a significant increase in operating income from chicken products, totaling $312 million for the second quarter ended March 29, 2025[36] - The company faced $54 million in restructuring and related charges during the second quarter of 2024, impacting overall financial performance[34] Taxation - The effective tax rate for the three months ended March 29, 2025, was 51.0%, significantly higher than 26.9% in the same period last year[23] Dividends - Dividends declared per share for Class A and Class B were $0.500 and $0.450 respectively, compared to $0.490 and $0.441 in the same period last year[23] Workforce and Corporate Responsibility - Tyson Foods had approximately 138,000 team members as of September 28, 2024, indicating a stable workforce size[41] - The company is committed to providing high-quality food safely and sustainably, aligning with its purpose of feeding the world like family[41] Communication and Risks - A conference call to discuss financial results is scheduled for May 5, 2025, at 9 a.m. Eastern, with a replay available until June 5, 2025[42] - Forward-looking statements indicate potential impacts from global pandemics, market conditions, and consumer preferences on future performance[43] - The company faces risks related to livestock diseases, input costs, and competition from alternative proteins, which could affect operations[43] - Tyson Foods emphasizes the importance of maintaining good relationships with team members and contract farmers to ensure operational stability[43] - The company is focused on leveraging brand value propositions and adapting to changes in consumer trends and preferences[43] - Financial information and updates can be accessed through the Tyson Investor Relations website, ensuring transparency for investors[42]

Core Insights - Tyson Foods, Inc. reported a slight increase in sales for the second quarter of 2025, reaching $13,074 million, compared to $13,072 million in the same period of 2024, marking a growth of 0.01% [4] - The company experienced a significant decline in GAAP operating income, which fell to $100 million, down 68% from $312 million in the previous year, while adjusted operating income rose to $515 million, up 27% from $406 million [4][6] - Net income attributable to Tyson decreased to $7 million, a drop of 95% from $145 million in the prior year, with adjusted net income per share increasing to $0.92, up 48% from $0.62 [4][6] Financial Performance - Total sales for the first six months of 2025 were $26,697 million, up 1.2% from $26,391 million in 2024 [4] - The company reported a GAAP operating margin of 0.8% for the second quarter, down from 2.4% in the previous year, while the adjusted operating margin improved to 3.8% from 3.1% [4][6] - Cash provided by operating activities was $846 million, a decrease of $331 million from the prior year, and free cash flow was $382 million, down $174 million [4][6] Segment Performance - Beef segment sales were $5,196 million, a decrease of 1.4% year-over-year, while pork sales fell by 3.8% to $1,244 million [5] - Chicken sales increased by 3.0% to $4,141 million, and prepared foods sales were $2,396 million, down 2.6% [5] - Adjusted operating income for the chicken segment was $312 million, up 7.5% from the previous year, while the pork segment reported an adjusted operating income of $55 million, up 3.7% [7] Outlook - For fiscal 2025, the USDA projects a 1% increase in domestic protein production compared to fiscal 2024 [8] - Tyson anticipates total company adjusted operating income between $1.9 billion and $2.3 billion for fiscal 2025 [15] - The company expects sales to remain flat to up 1% in fiscal 2025, factoring in a $343 million reduction due to legal contingency accruals [16]

Tyson Foods, Inc. TSN will release its second-quarter financial results before the opening bell on Monday, May 5.Analysts expect the Springdale, Arkansas-based company to report quarterly earnings at 82 cents per share, up from 62 cents per share in the year-ago period. Tyson Foods projects quarterly revenue of $13.14 billion, compared to $13.07 billion a year earlier, according to data from Benzinga Pro.On April 30, Lineage agreed to acquire multiple existing cold storage warehouses in the US from Tyson Fo ...

Core Insights - Analysts forecast Tyson Foods (TSN) will report quarterly earnings of $0.85 per share, reflecting a year-over-year increase of 37.1% [1] - Anticipated revenues are projected to be $13.1 billion, showing a slight increase of 0.2% compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [3] Sales Projections - Analysts project 'Sales- Chicken' to reach $4.05 billion, indicating a decrease of 0.3% from the prior-year quarter [4] - 'Sales- Beef' is estimated at $4.97 billion, reflecting a slight increase of 0.3% from the previous year [5] - 'Sales- International/Other' is expected to be $582.90 million, with a year-over-year increase of 0.5% [5] - 'Sales- Prepared Foods' is projected to reach $2.46 billion, indicating a year-over-year change of 2.3% [5] - 'Sales- Pork' is estimated at $1.47 billion, showing a decrease of 1.1% from the prior-year quarter [6] Adjusted Operating Income - 'Adjusted Operating Income (Loss)- Pork' is expected to be $40.74 million, compared to $33 million from the previous year [6] - 'Adjusted Operating Income (Loss)- International/Other' is projected at $14.62 million, up from $14 million in the same quarter last year [7] - 'Adjusted Operating Income (Loss)- Prepared Foods' is likely to reach $255.29 million, compared to $233 million in the same quarter last year [7] - 'Adjusted Operating Income (Loss)- Chicken' is estimated at $305.64 million, significantly higher than the year-ago figure of $160 million [8] Stock Performance - Tyson shares have experienced a decline of 4% in the past month, contrasting with the Zacks S&P 500 composite's decrease of 0.2% [8] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [8]

Core Insights - Tyson Foods, Inc. (TSN) is expected to show growth in both net sales and earnings for the second quarter of fiscal 2025, with net sales estimated at $13.1 billion, reflecting a 0.2% increase year-over-year, and earnings per share (EPS) projected at 85 cents, indicating a 37.1% growth from the previous year [1][2] Group 1: Financial Performance - The Zacks Consensus Estimate for Tyson Foods' international segment sales is projected at $582.9 million for Q2 fiscal 2025, showing growth from $580 million in the same quarter last year [3] - The consensus estimate for quarterly EPS is pegged at 89 cents, which implies a 7.3% decrease year-over-year [7] Group 2: Growth Strategy - Tyson Foods' growth strategy emphasizes international expansion, enhancing capacity utilization, and aligning operations with regional market needs to strengthen its global presence [3] - The company's growth strategy is built around three key pillars: operational excellence, consumer focus, and sustainability, which are driving productivity and efficiency improvements across its business segments [4] Group 3: Market Position - Tyson Foods continues to thrive due to its robust and diversified protein portfolio, allowing it to effectively navigate changing market cycles and capitalize on strong consumer demand for high-protein diets [2]