- Tyson 2Q Adjusted EPS beats estimates with 62c vs loss/share of 4.0c y/y, instead of the estimated 40c EPS 41c.
- Sales were $13.07 billion, a 0.5% decrease y/y and slightly lower than the estimated $13.15 billion.
- Sales volume decreased by 1.5%.
- Beef Sales Volume increased by 2.8% compared to last year, greater than estimated decrease of 3.8%.
- Pork Sales Volume increased by 2.9%, higher than last year’s increase of 1.1% and estimated increase of 0.56%.
- Chicken Sales Volume fell 6.1%, a significant drop compared to last year’s increase of 6.4% and estimated increase of 0.17%.
- Prepared Foods Sales Volume slightly increased by 0.7%, low and compared to the estimated +1.38%.
- International/Other Sales Volume increased by 3%, compared to last year’s increase of 8% and estimated increase of 3.5%.
- Adjusted operating income was $406 million, a significant rise from $65 million y/y and higher than the estimated $286 million.
- Operating margin was 2.4% as opposed to -0.4% y/y.
- Beef averaged price change was +4.5% as compared to last year decrease of 5.4%, slightly higher than estimated 3.2%.
- Pork averaged price change was +1.7%, increase from last year’s decrease of 10.3%, but lower than estimated increase of 2.58%.
- Fiscal year adjusted operating income for the total company is expected to range between $1.4 billion to $1.8 billion.
- Tyson anticipates a fiscal year adjusted operating loss for beef between ($400) million to ($100) million.
- The fiscal year adjusted operating income for pork is forecasted to be between $50 million to $150 million.
- Capital expenditures are expected to range between $1.2 billion and $1.4 billion for fiscal 2024.
- Sales are projected to remain relatively flat in fiscal 2024 compared to fiscal 2023.
Tyson Foods Inc Cl A on Smartkarma
Analyst coverage of Tyson Foods Inc Cl A on Smartkarma indicates a mix of sentiments from different research providers. Baptista Research‘s report, “Tyson Foods: Focus on Domestic Consumption and Expansion of the International Market! – Major Drivers,” highlights positive Q1 2024 financial results for the company. The report mentions a $175 million improvement in adjusted operating income, a near doubling of adjusted EPS, and strong performance in the prepared foods division.
On the contrary, Value Investors Club‘s report, “Tyson Foods Inc -Cl A (TSN) – Tuesday, Oct 17, 2023,” adopts a bearish stance. It raises concerns about negative attention from regulatory bodies regarding alleged collusion and price-fixing in the chicken industry. The investigation’s outcome remains uncertain, impacting the company’s reputation and market sentiment.
A look at Tyson Foods Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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
Based on Smartkarma Smart Scores analysis, Tyson Foods Inc Cl A shows a promising long-term outlook. The company scores high in Value and Dividend categories, indicating strong financial health and potential for returns to investors. With a respectable score in Resilience, Tyson Foods demonstrates a certain level of stability even in challenging market conditions.
However, the company scores lower in Growth, suggesting potential room for improvement in expanding its operations and market presence. On the bright side, Tyson Foods excels in Momentum, showcasing strong upward trends in its stock performance. Overall, Tyson Foods Inc Cl A appears well-positioned in the market based on these Smart Scores, despite some areas with growth potential.
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.
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