Tyson Foods’ quarterly net income beats estimates, revenue dips

Second fiscal quarter net income for Tyson Foods was above estimates, with revenue falling below expectations. Earnings per share was 41 cents, above the consensus estimate of 39 cents. Adjusted earnings per share was 62 cents.

Net income in the fiscal quarter ended March 30 was $145 million, better than the $97 million loss in the same period of 2023, the Springdale-based global meat production and distribution company reported Monday (May 6).

Total sales were $13.072 billion, below the $13.133 billion in the same quarter of the previous fiscal year and below the consensus estimate of $13.14 billion.

Net income in the first six months of the fiscal year was $252 million, up 15.1% compared with the $219 million in the same period of 2023. Total revenue in the first half of the fiscal year was $26.391 billion, almost flat compared with the $26.393 billion in the same period of 2023.

The company’s chicken segment returned to positive operating income in the quarter and the first six months. The large beef segment continues to weigh on results with a $241 million operating income loss in the first six months.

“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,” Donnie King, Tyson Foods president & CEO, said in a statement. “Looking to the back half of the year, we will continue to focus on executing the fundamentals and leveraging our multi-protein portfolio. We are energized by our progress to-date and laser-focused on driving long-term value.”

SEGMENT NUMBERS
Total sales and operating income continue to lag previous year levels, with the company’s large beef segment posting an operating income loss of $241 million in first half of the fiscal year. The company’s closely watched chicken segment pulled together operating income of $335 million in the first half of the year, a wide swing from the $189 million operating income loss in the same period of 2023.

The company said it expects to post a full year operating loss in the beef segment between $100 million and $400 million. The full year operating income in the chicken segment is estimated by the company to range between $700 million and $900 million. In the pork segment, the full year operating income could range between $50 million and $150 million, the company reported.

Following are segment sales and operating income numbers for the first half of fiscal 2024.

• Beef
Revenue
Six months fiscal year 2024: $9.977 billion
Six months fiscal year 2023: $9.34 billion

Operating income
Six months fiscal year 2024: -$241 million (loss)
Six months fiscal year 2023: $166 million

• Chicken
Revenue
Six months fiscal year 2024: $8.098 billion
Six months fiscal year 2023: $8.693 billion

Operating income
Six months fiscal year 2024: $335 million
Six months fiscal year 2023: -$189 million (loss)

• Prepared Foods
Revenue
Six months fiscal year 2024: $4.947 billion
Six months fiscal year 2023: $4.96 billion

Operating income
Six months fiscal year 2024: $473 million
Six months fiscal year 2023: $499 million

• Pork
Revenue
Six months fiscal year 2024: $3.003 billion
Six months fiscal year 2023: $2.95 billion

Operating income
Six months fiscal year 2024: $38 million
Six months fiscal year 2023: -$54 million (loss)

• International
Revenue
Six months fiscal year 2024: $1.162 billion
Six months fiscal year 2023: $1.246 billion

Operating income
Six months fiscal year 2024: -$62 million (loss)
Six months fiscal year 2023: -$4 million (loss)

Shares of Tyson Foods (NYSE: TSN) opened Monday at $61.21 and were trading more than 7% lower in morning activity. During the past 52 weeks the share price has ranged between $61.71 and $44.94.