Tyson Foods(US:TSN) Benzinga·2025-11-11 18:55Core Viewpoint - Tyson Foods, Inc. reported a decline in operating cash flow and free cash flow for the fourth quarter and fiscal year 2025, but analysts remain optimistic about the company's diversified protein model and future sales growth [1][3]. Financial Performance - Operating cash flow for Tyson Foods was $2.16 billion, down $435 million from the previous year, while free cash flow decreased by $281 million to $1.18 billion [1]. - Prepared Foods Adjusted Operating Income (AOI) fell 7.8% year over year to $189 million, reversing a previous quarter's growth of 21% [4]. Analyst Insights - Goldman Sachs analyst Leah Jordan maintained a Buy rating on Tyson Foods, raising the price target from $63 to $65, citing confidence in the company's diversified protein model [2]. - The analyst expects fiscal 2026 sales to increase between 2% and 4%, projecting sales between $55.53 billion and $56.62 billion, exceeding analyst estimates of $54.73 billion [3]. Market Trends - Continued strong demand for chicken is anticipated to offset challenges in the beef segment, with operational execution showing improvement [3][4]. - The company is experiencing a mix shift toward value-added products and incremental efficiency improvements, while feed costs are expected to remain stable, supporting margins [4]. Earnings Estimates - Following the fourth-quarter results and fiscal year 2026 guidance, earnings per share estimates for fiscal years 2026 and 2027 were revised down to $3.85 and $4.47, respectively, due to a weaker beef outlook and higher interest expenses [6]. - A new earnings per share estimate of $5.53 for fiscal year 2028 was introduced [6].