Tyson Foods Beef Up FY22 Outlook On Solid Q2 Earnings

Tyson Foods, Inc. TSN reported second-quarter FY22 sales growth of 16.1% year-on-year, to $13.12 billion, beating the consensus of $12.84 billion.
Sales volume of Beef rose 0.6% Y/Y, Pork fell 4.8%, Chicken climbed 0.6%, and Prepared Foods decreased 5.3%.
Gross profit increased 38.5% Y/Y to $1.7 billion, with the margin expanding 210 basis points to 13.2%.
The operating margin extended 240 basis points to 8.8%, and operating income for the quarter increased 60.6% to $1.2 billion.
Adjusted EPS of $2.29 beat the analyst consensus of $1.88.
The company held $1.2 billion in cash and equivalents as of April 2, 2022. Cash provided by operating activities for the six months amounted to $1.22 billion.
Adjusted EBITDA for six months ended April 2, 2022, increased 35.8% to $3.2 billion.
"Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, and productivity, and bringing more capacity online," said CEO Donnie King.
Outlook: Tyson Foods expects FY22 sales of $52 billion - $54 billion (prior view: Sales to be at the upper end of $49 billion - $51 billion), versus the consensus of $51.79 billion.
Price Action: TSN shares are trading higher by 0.75% at $91.51 on the last check Monday.