Core Insights - Tyson Foods reported Q4 fiscal 2024 adjusted earnings of 92 cents per share, significantly exceeding the Zacks Consensus Estimate of 64 cents, and up from 37 cents in the prior year [2] - Total sales reached $13,565 million, a 1.6% increase year-over-year, surpassing the Zacks Consensus Estimate of $13,326 million [2] - The gross profit for the quarter was $1,060 million, a substantial increase from $459 million in the same period last year [3] Financial Performance - Adjusted operating income more than doubled to $512 million from $236 million year-over-year, with an adjusted operating margin expanding to 3.8% from 1.8% [3] - Cash and cash equivalents stood at $1,717 million, with long-term debt of $9,713 million and total shareholders' equity of $18,514 million [7] - Liquidity was nearly $4 billion as of September 28, 2024, with expectations to remain above the minimum target of $1 billion in fiscal 2025 [8] Segment Performance - Beef segment sales increased to $5,261 million, with volumes rising 3.7% and average prices up 0.9% [4] - Pork segment sales declined to $1,438 million, despite a 3.2% increase in volumes, as average prices fell by 6.9% [4] - Chicken segment sales improved to $4,251 million, with a slight decrease in sales volumes of 0.7% and a 0.2% increase in average prices [5] Future Outlook - For fiscal 2025, total company revenue growth is expected to range from a decline of 1% to flat compared to fiscal 2024 [12] - Adjusted operating income is projected to be between $1.8 billion and $2.2 billion, with specific segment expectations indicating a potential operating loss in the Beef segment [12] - The USDA forecasts an increase in domestic protein production for chicken and pork, while a slight decline is expected for beef [10][11] Dividend Information - The quarterly dividend has been raised to 50 cents per share for Class A shares and 45 cents for Class B shares, resulting in an annual dividend rate of $2.00 and $1.80 respectively, reflecting a 2% increase from fiscal 2024 [9] Stock Performance - Tyson Foods has a Zacks Rank 2 (Buy), indicating expectations for an above-average return in the coming months [15]

Tyson Foods, Inc. (TSN) is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 17.51, higher than the industry average of 16.08. This premium valuation reflects the market's confidence in the company's potential to deliver strong profit growth. However, it remains to be seen if the company can report results that justify such a premium. Image Source: Zacks Investment ResearchShares of Tyson Foods have lagged in recent months, with a modest gain of 0.4% over the past three months, compar ...

Core Insights - Tyson Foods reported better-than-expected fourth-quarter results, driven by higher beef and chicken prices, leading to increased sales [1][2] - The company achieved adjusted earnings per share (EPS) of 92 cents, surpassing analysts' estimates, with revenue rising 1.6% year-over-year to $13.57 billion [1] - Tyson's shares surged over 8% in intraday trading following the announcement and have increased over 18% since the beginning of the year [2] Sales Performance - Beef sales increased by 4.6% to $5.26 billion, while chicken sales rose by 2.3% to $4.25 billion due to price hikes [2] - Conversely, pork sales fell by 3.7% to $1.44 billion, attributed to a 6.9% decline in pork prices [2] Financial Outlook - For fiscal 2024, Tyson's revenue reached $53.31 billion, exceeding previous projections [2] - The company anticipates flat to a 1% decline in full-year 2025 revenue compared to 2024, which is below market expectations [2]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Tyson Foods, Inc. (TSN) posted splendid fourth-quarter fiscal 2024 results, as the top and bottom lines increased year over year and beat the Zacks Consensus Estimate.Tyson Foods reported a strong enhancement in profitability for both the fourth quarter and the full year, alongside solidifying its financial status through robust cash flow and a significant decrease in net leverage. Management believes that TSN’s diversified multi-protein, multi-channel portfolio, skilled team, strong brands and commitment t ...

Core Insights - Tyson Foods reported revenue of $13.57 billion for the quarter ended September 2024, reflecting a year-over-year increase of 1.6% [1] - The company's EPS was $0.92, significantly higher than the $0.37 reported in the same quarter last year [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $13.33 billion, resulting in a surprise of +1.79% [2] - EPS also surpassed expectations with a surprise of +43.75%, compared to the consensus estimate of $0.64 [2] Sales Breakdown - Chicken sales reached $4.25 billion, exceeding the average estimate of $4.13 billion, marking a +2.3% year-over-year change [3] - Beef sales were reported at $5.26 billion, above the $5 billion estimate, representing a +4.6% increase year-over-year [3] - International/Other sales were $609 million, below the average estimate of $632.82 million, showing a -4.3% year-over-year decline [3] - Prepared Foods sales totaled $2.47 billion, under the $2.55 billion estimate, reflecting a -1.2% change from the previous year [3] - Pork sales were $1.44 billion, below the $1.48 billion estimate, indicating a -3.8% year-over-year change [3] Adjusted Operating Income - Adjusted Operating Income for Beef was a loss of $71 million, better than the estimated loss of $119.51 million [3] - Adjusted Operating Income for Pork was $19 million, below the $39.74 million estimate [3] - Adjusted Operating Income for International/Other was $3 million, compared to the average estimate of $12.52 million [3] - Adjusted Operating Income for Prepared Foods was $205 million, exceeding the estimate of $190.52 million [3] - Adjusted Operating Income for Chicken was $356 million, significantly higher than the average estimate of $278.27 million [3] Stock Performance - Tyson's shares have returned -1.7% over the past month, while the Zacks S&P 500 composite has increased by +3.3% [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [4]

Tyson Foods (TSN) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 43.75%. A quarter ago, it was expected that this meat producer would post earnings of $0.61 per share when it actually produced earnings of $0.87, delivering a surprise of 42.62%.Over the last four quarters, the company ...

Financial Performance - Sales increased by $0.4 billion to $53.3 billion in fiscal 2024, driven by higher average sales prices in the Beef segment[93]. - Operating income for fiscal 2024 was $1,409 million, a significant recovery from an operating loss of $395 million in fiscal 2023[93]. - Total sales for fiscal 2024 reached $53.3 billion, a 0.8% increase from $52.9 billion in 2023, with operating income of $1.4 billion compared to a loss of $395 million in 2023[112]. - Net income attributable to Tyson for 2024 was $800 million, compared to a loss of $648 million in 2023, resulting in a diluted earnings per share of $2.25 versus a loss of $1.87[110]. - The company reported a net income of $822 million for fiscal 2024, a significant recovery from a net loss of $649 million in fiscal 2023[146]. Segment Performance - The Beef segment reported sales of $20.5 billion in 2024, up 6.0% from $19.3 billion in 2023, but operating loss increased to $381 million from a loss of $91 million[114]. - The Pork segment generated $5.9 billion in sales for 2024, a 2.3% increase from $5.8 billion in 2023, with operating loss improving to $40 million from $139 million[116]. - The Chicken segment's sales decreased to $16.4 billion in 2024 from $17.1 billion in 2023, but operating income improved significantly to $988 million from a loss of $770 million[120]. - Prepared Foods segment sales remained stable at $9.9 billion in 2024, with operating income increasing to $879 million from $823 million in 2023[112]. - International/Other segment sales were $2.4 billion in 2024, down from $2.5 billion in 2023, with an operating loss of $37 million compared to a loss of $218 million in 2023[112]. Cost and Expenses - Cost of sales decreased by $568 million in fiscal 2024, primarily due to lower input costs, including a $895 million decrease in the Chicken segment related to feed ingredient costs[99]. - Selling, general and administrative expenses decreased by $27 million to $2,218 million in fiscal 2024, maintaining 4.2% as a percentage of sales[101]. - The company incurred $378 million in performance-based compensation costs in fiscal 2024, reflecting improved consolidated results[93]. - Interest expense increased to $481 million in fiscal 2024, primarily due to term loan facilities and newly issued notes[106]. Tax and Legal Matters - The effective tax rate for fiscal 2024 was impacted by state taxes and $63 million of non-deductible goodwill associated with the sale of a facility[109]. - Legal contingency accruals amounted to $174 million pretax in 2024, affecting earnings by $0.38 per diluted share[110]. - The company recognized $174 million and $156 million in legal accrual charges for fiscal 2024 and 2023, respectively, related to various litigations[150]. Debt and Liquidity - The company had total liquidity of $3,977 million as of September 28, 2024, including cash and cash equivalents, short-term investments, and availability under the revolving credit facility[131]. - The current ratio improved to 2.0 to 1 at September 28, 2024, compared to 1.3 to 1 at September 30, 2023, indicating enhanced short-term financial health[131]. - Total gross debt increased to $9,787 million as of September 28, 2024, compared to $9,506 million in the previous year, while total net debt decreased to $8,060 million from $8,918 million[145]. - The company maintained compliance with all debt covenants as of September 28, 2024, and anticipates continued compliance[139]. Pension and Benefits - The funded status of defined benefit pension plans showed an underfunded position of $158 million at the end of fiscal 2024, compared to $149 million at the end of fiscal 2023[140]. - The company expects to contribute approximately $14 million to its pension plans in fiscal 2025, consistent with contributions made in fiscal 2024[140]. - The projected benefit obligation for the defined benefit pension plans was $188 million at the end of fiscal 2024, with a net periodic benefit cost of $8 million for the same fiscal year[160]. Goodwill and Impairment - The company recorded no goodwill impairment charges in fiscal 2024, a recovery from $781 million in fiscal 2023[104]. - The company evaluates goodwill and indefinite life intangible assets for impairment annually, with the assessment date set for the first day of the fourth quarter[164]. - As of September 28, 2024, the Beef segment reporting unit had goodwill of $0.3 billion, with a heightened risk of impairment due to challenging market conditions and lower cattle supplies[166]. - The Chicken segment reporting units had goodwill of $3.0 billion at September 28, 2024, with projected long-term operating margins needing to average approximately 4.0%-5.0% to avoid impairment[166]. Operational Efficiency - The company experienced a significant reduction in feed ingredient costs, amounting to $895 million in 2024, contributing to improved operational efficiencies[121]. - Cash provided by operating activities for fiscal 2024 was $2,590 million, an increase of $838 million compared to $1,752 million in fiscal 2023[127]. - Capital expenditures for fiscal 2025 are expected to be between $1.0 billion and $1.2 billion, focusing on profit improvement projects and maintenance[128]. Market and Economic Factors - The Beef segment faced limited supply of market-ready cattle and increased live cattle costs, while the Pork segment experienced sufficient supply and reduced hog costs[94]. - A hypothetical 10% increase in interest rates would increase annualized interest expense by approximately $10 million[179]. - The company has foreign exchange exposure primarily from certain receivable and payable balances, with a hypothetical 10% change in foreign exchange rates impacting pretax income by $25 million at September 28, 2024[180].

Financial Performance - Sales for fiscal 2024 reached $53,309 million, up 0.8% from the prior year[3] - Adjusted operating income for fiscal 2024 was $1,820 million, a 95% increase from the prior year[3] - Adjusted EPS for fiscal 2024 was $3.10, up 131% from the prior year[3] - Fourth quarter sales were $13,565 million, up 1.6% from the prior year[4] - Fourth quarter adjusted operating income was $512 million, up 117% from the prior year[4] - Sales for the twelve months ended September 28, 2024, increased to $53,309 million, up 0.8% from $52,881 million in the previous year[13] - Gross profit for the twelve months ended September 28, 2024, was $3,627 million, representing a gross margin of 6.8%, compared to $2,631 million and 5.0% in the previous year[13] - Net income attributable to Tyson for the twelve months ended September 28, 2024, was $800 million, compared to a net loss of $648 million in the previous year[13] - Adjusted operating income for the twelve months ended September 28, 2024, was $1,820 million, up from the reported operating income of $1,409 million[29] - Net income for the twelve months ended September 28, 2024, was $822 million, compared to a net loss of $649 million for the same period in 2023[34] - Adjusted EBITDA for the twelve months ended September 28, 2024, was $3,120 million, up from $2,149 million in 2023[34] Segment Performance - Beef segment sales for the fourth quarter were $5,261 million, up 3.7% in volume and 0.9% in price from the prior year[5] - Chicken segment adjusted operating income for the fourth quarter was $356 million, up from $75 million in the prior year[7] Cash Flow and Capital Expenditures - Cash and cash equivalents increased significantly to $1,717 million as of September 28, 2024, from $573 million in the previous year[15] - Cash provided by operating activities for the twelve months ended September 28, 2024, was $2,590 million, compared to $1,752 million in the previous year[19] - Additions to property, plant, and equipment for the twelve months ended September 28, 2024, were $1,132 million, down from $1,939 million in the previous year[18] - Free cash flow, defined as cash provided by operating activities minus payments for property, plant, and equipment, was $1,458 million for the twelve months ended September 28, 2024[19][18] - Free cash flow for the twelve months ended September 28, 2024, was $1,458 million, a significant improvement from a negative $187 million in 2023[35] Debt and Financial Ratios - Long-term debt increased to $9,713 million as of September 28, 2024, from $7,611 million in the previous year[16] - Gross debt to EBITDA ratio improved to 3.4x in 2024 from 9.7x in 2023[34] - Net debt to EBITDA ratio improved to 2.8x in 2024 from 9.1x in 2023[34] Non-GAAP and Adjusted Metrics - Adjusted non-GAAP net income attributable to Tyson for the twelve months ended September 28, 2024, was $329 million, with an adjusted EPS of $0.92[25] - Tyson Foods reported a GAAP net loss of $450 million for the fourth quarter ended September 30, 2023, with an EPS impact of $(1.31)[26] - Adjusted Non-GAAP net income for the fourth quarter was $133 million, with an EPS impact of $0.37[26] - For the twelve months ended September 28, 2024, Tyson Foods reported a GAAP net income of $800 million, with an EPS impact of $2.25[27] - Adjusted Non-GAAP net income for the twelve months ended September 28, 2024, was $1,103 million, with an EPS impact of $3.10[27] Impairments and Contingencies - Tyson Foods recorded a goodwill impairment of $333 million in the fourth quarter of 2023[26] - Legal contingency accruals amounted to $118 million in the fourth quarter of 2023[26] Restructuring and Plant Closures - Plant closures and disposals contributed $215 million to operating income in the fourth quarter of 2023[26] - Restructuring and related charges for the twelve months ended September 28, 2024, were $31 million, down from $124 million in 2023[34] - Plant closures and disposals for the twelve months ended September 28, 2024, were $182 million, down from $322 million in 2023[34] Operational Highlights - The Netherlands facility contributed $86 million to adjusted operating income for the twelve months ended September 28, 2024[29] - Brand discontinuation added $8 million to adjusted operating income for the twelve months ended September 28, 2024[29] - The company had approximately 138,000 team members as of September 28, 2024[37] Future Outlook - The company anticipates total adjusted operating income for fiscal 2025 to be between $1.8 billion and $2.2 billion[11] - Capital expenditures for fiscal 2025 are expected to be between $1.0 billion and $1.2 billion[11] - The company expects free cash flow to exceed dividends for fiscal 2025[11] Depreciation and Amortization - Depreciation expense for the twelve months ended September 28, 2024, was $1,159 million, up from $1,100 million in 2023[34] - Amortization expense for the twelve months ended September 28, 2024, was $229 million, consistent with 2023[34]

Tyson Foods, Inc. (TSN) is likely to register bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Nov. 12. The consensus mark for earnings has remained unchanged in the past 30 days at 64 cents per share, indicating an increase of nearly 73% from the figure reported in the year-ago quarter. TSN has a trailing four-quarter earnings surprise of 49%, on average. The Zacks Consensus Estimate for revenues is pegged at $13.3 billion, implying a 0.2% dip from the prior-year quarter’s reported ...