- Tyson’s first quarter adjusted earnings per share (EPS) were $1.14, outperforming both the previous year’s $0.69 and the estimated $0.91.
- Reported EPS rose to $1.01 from $0.30 the previous year.
- Beef sales volume saw a significant increase of 5.6%, compared to last year’s decline of 4.1%, and exceeded the estimated decrease of 2.33%.
- Pork sales volume slightly declined by 0.4%, a drop from the previous year’s increase of 7.7%, and below the estimated decline of 0.17%.
- Chicken sales volume grew by 1.5%, improving on last year’s decrease of 1.5%, and surpassed the estimated growth of 1%.
- Prepared Foods sales volume dropped by 3.2%, a reversal from the 2.5% increase last year and below the estimated rise of 1.2%.
- International/Other sales volume increased by 4.3%, an improvement over last year’s 2.2% rise, and better than the estimated 1.67% increase.
- Total sales reached $13.62 billion, a 2.3% increase compared to last year, and ahead of the estimated $13.44 billion.
- Company-wide sales volume rose by 1.6%.
- Adjusted operating income soared by 60% year-over-year to $659 million, surpassing the estimated $518.9 million.
- The beef segment experienced an adjusted operating margin of -0.6%, up from -2.3% last year, and better than the estimated -2.06%.
- Pork’s adjusted operating margin was 3.6%, a slight drop from last year’s 4.5%, and just under the estimated 3.7%.
- Chicken’s adjusted operating margin significantly rose to 9.1%, compared to 4.8% last year, and was above the estimated 7.25%.
- Average price changes varied: beef at +0.6%, pork at +7%, chicken at -0.7%, prepared foods at +0.4%, and international/other at -4%.
- Overall company operating margin increased to 4.3%, compared to 1.7% last year.
- The adjusted operating margin reached 4.8%, surpassing both last year’s 3.1% and the estimated 3.91%.
- The average price rise was 0.7%, slightly higher than last year’s 0.4%, and above the estimated 0.41%.
- For the year, Tyson forecasts an adjusted operating income between $1.9 billion and $2.3 billion.
- Capital expenditure is projected to remain between $1.0 billion and $1.2 billion, close to the estimated $1.18 billion.
- Analyst recommendations include 5 buys, 7 holds, and 3 sells.
Tyson Foods Inc Cl A on Smartkarma
Analysts on Smartkarma, like Baptista Research, are bullish on Tyson Foods Inc Cl A, a major player in the food industry. In their research reports such as “Tyson Foods’ Prepared Foods Breakthrough: The Innovative Products Leading the Convenience Revolution!” and “Tyson Foods: Expansion in Prepared Foods Sector & Leveraging International Growth Opportunities To Catalyze The Top-Line!”, analysts point out the company’s significant improvements in adjusted operating income and earnings per share. They emphasize the strategic operational enhancements in the Chicken and Prepared Foods segments that drove growth. Despite challenges in the Beef segment due to market headwinds, Tyson Foods exhibited strong financial performance.
A look at Tyson Foods Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have evaluated Tyson Foods Inc Cl A using their Smart Scores system, which rates companies on various factors important for long-term performance. Tyson Foods Inc Cl A received a strong score of 4 for both Value and Dividend, indicating that the company is considered to be undervalued and offers a good dividend payout. However, the company scored lower on Growth with a 2, suggesting that there may be limited growth potential. In terms of Resilience and Momentum, Tyson Foods Inc Cl A scored a 3 which shows a moderate level of resilience and momentum in the market.
Tyson Foods, Inc. is a leading producer, distributor, and marketer of chicken, beef, pork, and prepared foods. They cater to a wide range of customers including grocery retailers, wholesalers, meat distributors, warehouse club stores, military commissaries, and food processing companies. With strong scores in value and dividends, Tyson Foods Inc Cl A seems to be positioned well for stability and income generation, although there may be challenges in terms of growth potential based on the Smart Scores provided.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
