Why Is Tyson (TSN) Down 2.2% Since Last Earnings Report?

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]