Tyson Shares Drop After Mixed Quarter With Weak Sales, Solid Profit

Shares of Tyson Foods Inc TSN are trading lower on Monday after the second-quarter FY25 earnings.

The company reported second-quarter sales of $13.07 billion, consistent with last year, missing the analyst consensus estimate of $13.14 billion.

Sales volume of Beef decreased 1.4% Y/Y, Pork declined 3.8%, Chicken climbed 3%, and Prepared Foods dropped 2.6%.

Gross profit declined 30.7% to $600 million from $866 million the prior year, with the margin contracting 200 basis points to 4.6%. The company's operating income plunged 67.9% to $100 million, with an operating margin of 0.8%.

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Adjusted EBITDA for the six-months increased 25.8% to $1.8 billion. Adjusted EPS of $0.92 beat the consensus estimate of $0.82.

The company held $992 million in cash and equivalents as of March 29, 2025.

"Our consistent focus on operational excellence, winning with customer and consumers, leveraging data and digital, and enhancing our financial strength has resulted in four consecutive quarters of year-over-year improvements in our top and adjusted bottom lines," said president and CEO Donnie King.

Outlook Reaffirmed: Tyson Foods sees FY25 sales to be flat to up 1%. The company anticipates total company adjusted operating income of $1.9 billion to $2.3 billion for fiscal 2025

The company sees capital expenditures of $1.0 billion – $1.2 billion in FY25. Free cash flow is expected to be $1.0 billion – $1.6 billion.

Price Action: TSN shares traded lower by 9.1% at $55.20 at last check Monday.

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