Tyson Foods(US:TSN) ZACKS·2025-05-05 17:10Core Insights - Tyson Foods, Inc. (TSN) reported a strong increase in adjusted earnings per share, reaching 92 cents, which exceeded the Zacks Consensus Estimate of 85 cents and marked a 48% increase from the previous year's 62 cents [2] - Total sales remained flat at $13,074 million year over year, missing the Zacks Consensus Estimate of $13,097.8 million, with average price changes positively impacting the top line by 2.6% while total volumes remained unchanged [2] Financial Performance - Gross profit for the quarter was $600 million, down from $866 million in the same period last year [3] - Adjusted operating income increased by 27% to $515 million from $406 million year over year, with the adjusted operating margin expanding to 3.8% from 3.1% [3] Segment Performance - Beef: Sales increased to $5,196 million from $4,954 million, with volumes down 1.4% and average prices up 8.2% [4] - Pork: Sales decreased to $1,244 million from $1,486 million, with volumes down 3.8% and average prices up 4.3% [4] - Chicken: Sales improved to $4,141 million from $4,065 million, with sales volumes growing 3% and average prices down 1.1% [5] - Prepared Foods: Sales were $2,396 million, down from $2,404 million, with volumes dipping 2.6% and average prices rising 2.3% [5] - International/Other: Sales were $566 million compared to $580 million, with volumes down 1.5% and average sales prices down 0.9% [6] Financial Position - The company ended the quarter with cash and cash equivalents of $992 million, long-term debt of $8,172 million, and total shareholders' equity of $18,531 million [7] - Liquidity stood at $3.2 billion, expected to remain above the minimum target of $1 billion for fiscal 2025, with projected capital expenditure of $1-$1.2 billion [8] Future Outlook - The USDA projects a 1% increase in domestic protein production for fiscal 2025 compared to fiscal 2024 [10] - For fiscal 2025, Tyson Foods anticipates total revenue growth to be flat to a 1% increase, with adjusted operating income expected in the range of $1.9-$2.3 billion [12] - Segment-wise, adjusted operating income projections include a loss of $0.4-$0.2 billion for Beef, and profits of $0.1-$0.2 billion for Pork, $1-$1.3 billion for Chicken, and $0.9-$1.1 billion for Prepared Foods [13]