Why Is Tyson (TSN) Down 3.7% Since Last Earnings Report?

Core Viewpoint - Tyson Foods reported mixed results for Q2 fiscal 2024, with a decline in sales but a significant increase in adjusted earnings, leading to a raised guidance for adjusted operating income for the fiscal year [2][4][13]. Financial Performance - Adjusted earnings were 62 cents per share, surpassing the Zacks Consensus Estimate of 35 cents per share, and a notable improvement from a loss of 4 cents per share in the previous year [4]. - Total sales amounted to $13,072 million, a decrease of 0.5% year-over-year, and below the Zacks Consensus Estimate of $13,133 million [4]. - Gross profit increased to $866 million from $527 million year-over-year, while adjusted operating income rose to $406 million from $65 million [5]. Segment Performance - Beef segment sales increased to $4,954 million, with volumes up 2.8% and average prices up 4.5% [6]. - Pork segment sales rose to $1,486 million, with volumes growing 2.9% and average prices increasing by 1.7% [6]. - Chicken segment sales decreased to $4,065 million, with volumes down 6.1% and average prices down 2.1% [7]. - Prepared Foods segment sales fell to $2,404 million, with a slight volume increase of 0.7% but a price decrease of 1.4% [7]. - International/Other segment sales were $580 million, down from $634 million, with volumes up 3% but average prices down 11.5% [8]. Financial Position - The company ended the quarter with cash and cash equivalents of $2,182 million and long-term debt of $9,645 million [9]. - Cash provided by operating activities for the six months ended March 30, 2024, was $1,177 million, with liquidity around $4.4 billion [9]. Guidance and Outlook - For fiscal 2024, total company sales are projected to be relatively flat compared to fiscal 2023, with adjusted operating income expected in the range of $1.4-$1.8 billion [13]. - The USDA projects a slight increase in domestic protein production for beef, pork, chicken, and turkey in fiscal 2024 [11]. - Management anticipates improved adjusted results from foreign operations during fiscal 2024 [12]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 15.62% [14]. - Tyson Foods currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [16].