What's Going On With Tyson Foods Stock Post Mixed Q2 Results?

Zinger Key Points
  • Tyson Foods posts Q2 sales of $13.072 billion, missing the analyst consensus estimate of $13.157 billion.
  • Adjusted EPS of $0.62 beat the consensus estimate of $0.39. 

Tyson Foods Inc TSN reported a second-quarter FY24 sales decline of 0.46% year-on-year to $13.072 billion, missing the analyst consensus estimate of $13.157 billion.

Sales volume of Beef gained 2.8% Y/Y, Pork climbed 2.9%, Chicken declined 6.1%, and Prepared Foods increased 0.7%.

Gross profit jumped 64.3% to $866 million, with the margin expanding over 250 basis points to 6.6%.

The company reported an operating income of $312 million with an operating margin of 2.4% compared to an operating loss of $(49) million last year.

Adjusted EBITDA increased 25.5% to $1.5 billion. Adjusted EPS of $0.62 beat the consensus estimate of $0.39. 

The company held $2.2 billion in cash and equivalents as of March 30. Operating cash flow for six months totaled $1.2 billion.

“During the second quarter, we continued our positive momentum and made progress on our key initiatives. The strategies we have implemented are delivering tangible results, as evidenced by our return to year-over-year bottom line growth,” said President and CEO Donnie King.

Outlook: Tyson Foods continues to expect FY24 sales to be relatively flat compared to fiscal 2023.

The company anticipate total company adjusted operating income of $1.4 billion to $1.8 billion for fiscal 2024, against the prior view of $1.0 billion to $1.5 billion.

The company currently expects FY24 capital expenditure of about $1.2 billion – $1.4 billion.

Price Action: TSN shares are trading higher by 1.74% at $63.10 in premarket at the last check Monday.

Image Via Shutterstock

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