The meat processor beats earnings and revenue estimates for its fiscal first quarter. ...

Financial Performance - Sales increased by 5% or $690 million in Q1 fiscal 2026, driven by growth in Beef, Chicken, and Prepared Foods segments, while Pork and International segments saw declines [134]. - Operating income for Q1 fiscal 2026 was $302 million, down 48% compared to Q1 fiscal 2025, impacted by $115 million in restructuring charges and $155 million in legal contingency accruals [134]. - Net income attributable to Tyson was $85 million in Q1 fiscal 2026, down from $359 million in Q1 fiscal 2025, resulting in a diluted earnings per share of $0.24 compared to $1.01 [155]. - The effective tax rate for Q1 fiscal 2026 was 29.7%, up from 23.5% in Q1 fiscal 2025, influenced by state taxes and foreign withholding tax on repatriated earnings [151][152]. Segment Performance - The Beef segment reported a sales increase to $5,771 million in Q1 fiscal 2026 from $5,335 million in Q1 fiscal 2025, while the Pork segment saw a slight decline in sales [157]. - Beef segment sales increased by $436 million to $5,771 million, with a sales volume change of -7.3% and an average sales price change of +17.2% [160]. - Pork segment sales decreased by $8 million to $1,609 million, with a sales volume change of +1.6% and an average sales price change of +1.6% [162]. - Chicken segment sales increased by $147 million to $4,212 million, with a sales volume change of +3.7% and an average sales price change of -0.1% [166]. - Prepared Foods segment sales increased by $200 million to $2,673 million, with a sales volume change of +0.2% and an average sales price change of +7.9% [167]. Cost and Expenses - Cost of sales increased by $977 million, with higher input costs per pound contributing approximately $1,017 million, including $850 million in cattle costs for the Beef segment [145]. - Selling, general and administrative expenses decreased to $506 million in Q1 fiscal 2026 from $515 million in Q1 fiscal 2025, representing 3.5% of sales [146]. - Corporate expenses decreased by $13 million to $188 million, while amortization decreased by $10 million to $54 million [174]. Cash Flow and Liquidity - Cash provided by operating activities was $942 million, a decrease of $89 million compared to the prior year [178]. - Total liquidity at December 27, 2025, was $4,528 million, including cash and cash equivalents of $1,278 million [181]. - The company had current debt of $909 million, which it intends to pay with existing cash and cash generated from operating activities [183]. - The revolving credit facility has a committed capacity of $2.5 billion, providing additional liquidity for working capital needs [184]. - The company entered into a $750 million revolving term loan credit facility, maturing in December 2028, with no borrowings under this facility during the three months ended December 27, 2025 [189]. Debt and Interest Rates - The company expects net interest expense to approximate $370 million for fiscal 2026 [189]. - As of December 27, 2025, $654 million of cash was held in international accounts of foreign subsidiaries, which are not relied upon for domestic liquidity needs [189]. - A hypothetical 10% increase in interest rates would increase annualized interest expense by less than $1 million, with variable rate debt of $44 million at a weighted average interest rate of 4.8% [205]. - The company had fixed-rate debt of $8,318 million with a weighted average interest rate of 4.8% [206]. - A hypothetical 10% decrease in interest rates would have increased the fair value of fixed-rate debt by approximately $227 million at December 27, 2025, and $231 million at September 27, 2025 [206]. Risk Management - The company assesses goodwill and indefinite life assets for impairment annually, with one international reporting unit having goodwill of $0.2 billion considered at heightened risk of impairment [196]. - The fair value of livestock and grain positions is sensitive to market price changes, with a 10% change in fair value resulting in potential impacts of $37 million for live cattle and $36 million for corn as of December 27, 2025 [204]. - The company utilizes derivative financial instruments to manage commodity price risks, with significant price fluctuations potentially impacting results of operations [203]. - The company is exposed to interest rate risk related to pension and post-retirement benefit obligations, which could increase cash contribution requirements if plan asset values decline [207]. - The primary foreign currencies the company is exposed to include the Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, European euro, Malaysian ringgit, Mexican peso, and Thai baht [208]. - A hypothetical 10% change in foreign exchange rates would have impacted pretax income by $14 million at December 27, 2025, and $21 million at September 27, 2025 [208]. Compliance and Governance - The company maintains compliance with all debt covenants as of December 27, 2025, and expects to continue doing so [193]. - Detailed discussions on concentration of credit risks are available in the company's Annual Report filed on Form 10-K for the fiscal year ended September 27, 2025 [209].

Core Insights - Tyson Foods reported larger-than-expected quarterly earnings driven by strong demand for chicken products, despite significant losses in its beef business [1][3] - The U.S. cattle herd has reached a 75-year low, impacting beef supply and prices, while shifting demand towards more affordable chicken options [2] Financial Performance - Tyson's net sales increased by 5.1% to $14.31 billion in the first quarter, surpassing analyst expectations of $14.09 billion [3] - Adjusted earnings per share were reported at 97 cents, exceeding the forecast of 94 cents [3] Sales and Segment Performance - Chicken unit sales rose by 3.7% for the quarter, while beef sales volumes declined by 7.3% as beef prices surged by 17.2% [2] - The company anticipates a sales increase of 2% to 4% in fiscal 2026, with the midpoint exceeding analysts' estimates of 2.8% [3] Outlook and Adjustments - Tyson raised its adjusted income outlook for chicken, pork, and prepared foods for fiscal 2026, while reducing the projected loss for beef [4] - The company expects chicken segment operating income to range from $1.65 billion to $1.90 billion on an adjusted basis for fiscal 2026, an increase from the previous expectation of $1.25 billion to $1.5 billion [4] Operational Changes - Tyson initiated mass layoffs in January at a major beef plant in Lexington, Nebraska, which previously employed around 3,200 people, and plans to reduce operations at a beef plant in Amarillo, Texas [5]

Financial Performance - Sales for Q1 2026 were $14,313 million, a 5.1% increase from $13,623 million in Q1 2025[1] - GAAP operating income decreased by 48% to $302 million, while adjusted operating income fell by 13% to $572 million[4] - Net income per share attributable to Tyson was $0.24, down 76% from $1.01 in the prior year[4] - Net income for the three months ended December 27, 2025, was $90 million, down 75.5% from $366 million for the same period in 2024[26] - EBITDA for the three months ended December 27, 2025, was $591 million, compared to $918 million for the same period in 2024, reflecting a decline of approximately 35.5%[39] - Total adjusted EBITDA for the twelve months ended December 27, 2025, was $3.632 billion, up from $3.550 billion in the previous year[39] Liquidity and Capital Expenditures - Total liquidity as of December 27, 2025, was $4.5 billion, with a minimum liquidity target of $1.0 billion[4][18] - The company expects capital expenditures of $0.7 billion to $1.0 billion in fiscal 2026[16] - Cash provided by operating activities was $942 million, a decrease of 8.6% compared to $1,031 million in the prior year[26] - Cash and cash equivalents at the end of the period were $1,278 million, down from $2,292 million, a decline of 44.3%[26] - Free cash flow for the three months ended December 27, 2025, was $690 million, down from $760 million for the same period in 2024[41] - Free cash flow is anticipated to be between $1.1 billion and $1.7 billion for fiscal 2026[19] Debt and Equity - Total assets decreased to $36,019 million from $36,658 million, a decline of 1.75%[24] - Total current liabilities decreased to $6,203 million from $6,389 million, a reduction of 2.9%[24] - Long-term debt decreased to $7,453 million from $7,921 million, a decline of 5.9%[24] - Total gross debt as of December 27, 2025, was $8.830 billion, an increase from $8.362 billion in the previous year[39] - Total shareholders' equity decreased to $18,163 million from $18,227 million, a decline of 0.35%[24] - Net debt/Adjusted EBITDA ratio improved to 2.1x for the twelve months ended December 27, 2025, compared to 2.0x in the previous year[39] Future Outlook - The company anticipates total adjusted operating income of $2.1 billion to $2.3 billion for fiscal 2026[14] - Sales are expected to grow by 2% to 4% in fiscal 2026 compared to fiscal 2025[15] - Segment operating income for Chicken is projected to be between $1.65 billion and $1.90 billion in fiscal 2026[10] - The effective tax rate is expected to approximate 25% in fiscal 2026[20] - The company plans to continue optimizing operations and exploring acquisition opportunities to enhance growth[44] - Forward-looking statements indicate potential impacts from global pandemics, commodity price fluctuations, and changes in consumer preferences[44] Cash Flow Activities - Cash used for investing activities was $183 million, a decrease from $233 million in the previous year, reflecting a reduction of 21.5%[26] - Cash used for financing activities increased to $718 million from $195 million, an increase of 268.2%[26] - Cash provided by operating activities for the three months ended December 27, 2025, was $942 million, compared to $1.031 billion for the same period in 2024[41] Workforce - The company had approximately 133,000 team members as of September 27, 2025[42]

SPRINGDALE, Ark., Feb. 02, 2026 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, reported the following results: (in millions, except per share data)First Quarter 2026 2025Sales$14,313  $13,623       Operating Income$302  $580 Adjusted1 Operating Income (non-GAAP)$572  $659       Net Income Per Share Attributable to Ty ...

Group 1 - U.S. stock futures are trading lower, indicating a cautious market sentiment [1] - Walt Disney Co. is expected to report quarterly earnings of $1.56 per share on revenue of $25.68 billion, with shares rising 0.2% to $113.00 in after-hours trading [1] - Tyson Foods Inc. is anticipated to post quarterly earnings of 94 cents per share on revenue of $14.09 billion, with shares increasing 0.6% to $65.70 in after-hours trading [1] - AZZ Inc. announced a new $100 million share repurchase program, leading to a 0.3% gain in shares to $124.60 in after-hours trading [1]

Core Viewpoint - Tyson Foods, Inc. (TSN) is expected to report growth in net sales for the first quarter of fiscal 2026, with estimates at $14.1 billion, reflecting a 3.7% increase from the previous year [1] Group 1: Financial Performance - The Zacks Consensus Estimate for earnings is $1.01 per share, indicating an 11.4% decline from the same quarter last year, although the consensus has increased by 3.1% in the last 30 days [2] - The Prepared Foods segment is projected to generate sales of $2,590 million, up from $2,473 million in the prior-year quarter, indicating growth in this area [5] Group 2: Operational Strengths - Tyson Foods is benefiting from a strong diversified protein portfolio, with resilient demand for affordable, high-quality protein options, particularly in chicken [3] - Operational improvements have led to enhanced yield, capacity utilization, labor productivity, and service levels, especially in the chicken and prepared foods segments, achieving the highest fill rates since 2013 [4] Group 3: Market Dynamics - The company’s growth strategy includes strengthening its international business by managing costs and improving efficiency to align with regional market needs [6] - Despite steady demand, profit margins may be pressured by higher costs, particularly in beef due to tight cattle supplies, and delays in passing on raw material costs in prepared foods [7] Group 4: Earnings Outlook - The model predicts an earnings beat for Tyson Foods, supported by a positive Earnings ESP of +1.49% and a Zacks Rank of 3 (Hold) [8]

Core Viewpoint - Tyson Foods is a significant player in the food industry, with upcoming quarterly earnings expected to show a decrease in EPS but an increase in revenue [1][3]. Financial Performance - The company is projected to report an EPS of $1.01, which represents an 11.4% decrease from the same quarter last year [3]. - Revenue is anticipated to reach approximately $14.12 billion, reflecting a 3.66% increase from the previous year [3]. - Tyson Foods has a price-to-earnings (P/E) ratio of about 47.88, indicating the price investors are willing to pay for each dollar of earnings [4]. - The price-to-sales ratio stands at approximately 0.43, suggesting that investors are paying 43 cents for every dollar of sales [4]. - The company has a debt-to-equity ratio of about 0.49, indicating a balanced approach to financing its assets [4]. Stock Performance - Tyson Foods' stock closed at $64.60, marking a 1.75% decrease from the previous session, contrasting with the S&P 500's slight loss of 0.01% [2]. - Despite the recent dip, Tyson Foods' shares have risen by 11.1% over the past month, outperforming the Consumer Staples sector's gain of 4.93% and the S&P 500's increase of 0.78% [2]. Market Sentiment - Investors are closely monitoring the upcoming earnings report, as a positive surprise could drive the stock higher, while a miss might lead to a decline [5]. - The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations [5].

Core Viewpoint - NFM Lending is undergoing a strategic leadership transition with Bob Tyson becoming CEO and LaTasha Waddy being appointed as President, while David Silverman remains involved in the organization to focus on long-term strategic vision and technology development [1][2][3]. Group 1: Leadership Transition - Bob Tyson has transitioned from President to Chief Executive Officer effective January 1, 2026 [1]. - LaTasha Waddy has been named President, previously serving as Chief Legal Counsel and Executive Vice President [1]. - David Silverman, the former Founder/CEO, will continue to support the organization while focusing on strategic vision and technology [1][3]. Group 2: Company Commitment - NFM Lending emphasizes that the leadership change will be seamless for business partners, clients, and employees, maintaining a commitment to exceptional service and innovative mortgage solutions [2]. - The company is dedicated to driving innovation in the mortgage industry and thanks its partners, clients, and employees for their ongoing support [3]. Group 3: Company Background - NFM Lending is a national mortgage lending company licensed in 49 states and the District of Columbia, founded in 1998 in Baltimore, Maryland [4]. - The company is recognized for its exceptional service and diverse loan offerings, aiming to help families achieve homeownership [4]. - NFM Lending's success is attributed to its commitment to customers and the community, with a family of companies that includes Main Street Home Loans, Bluprint Home Loans, Element Home Loans, Homespire Home Loans, and Creator Collective [4].

Core Viewpoint - The market anticipates a year-over-year decline in Tyson Foods' earnings despite an increase in revenues when it reports its results for the quarter ended December 2025 [1][3]. Earnings Expectations - Tyson Foods is expected to report quarterly earnings of $1.01 per share, reflecting an 11.4% decrease year-over-year [3]. - Revenue projections stand at $14.12 billion, indicating a 3.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.49% higher in the last 30 days, suggesting a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for Tyson is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.49%, indicating a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise History - In the last reported quarter, Tyson exceeded expectations by posting earnings of $1.15 per share against an expected $0.85, achieving a surprise of +35.29% [13]. - Over the past four quarters, Tyson has consistently beaten consensus EPS estimates [14]. Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Tyson currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a high probability of exceeding earnings expectations [12].