Tyson Foods Inc. TSN shares continue to slide lower on Tuesday. This comes after yesterday's decline of more than 7%. Earnings came in at 92 cents, which was slightly ahead of estimates. But the $13.07 billion of revenue was lower than the $13.14 billion analysts were looking for.Despite today's move, there is a good chance that it could reverse and head higher. This is why we have made it our Stock of the Day.Sometimes, technical market dynamics can be more important than the fundamental news that has been ...

Tyson Foods TodayTSNTyson Foods$55.72 -0.36 (-0.64%) 52-Week Range$53.61▼$66.88Dividend Yield3.59%P/E Ratio18.88Price Target$61.78Add to WatchlistTyson Foods' NYSE: TSN stock price action retreated by more than 7% following the Q2 release and guidance update, creating an opportunity for investors. The market’s knee-jerk reaction to guidance put the share price back to long-term lows, where support is still evident. The reaction is knee-jerk because guidance is solid, reaffirmed at previously stated levels, ...

Tyson Foods reported lower-than-expected quarterly sales and stuck to its annual revenue forecast on Monday amid weaker demand for beef, sending shares down 9% and overshadowing better-than-anticipated profits.President Trump’s trade policies hung over the meat company due to concerns that tariff disputes could raise prices for a range of consumer goods and further reduce demand for pricey meat products.Beef prices have already climbed after US ranchers slashed their cattle herds due to a years-long drought ...

Core Insights - Tyson Foods, Inc. (TSN) reported a strong increase in adjusted earnings per share, reaching 92 cents, which exceeded the Zacks Consensus Estimate of 85 cents and marked a 48% increase from the previous year's 62 cents [2] - Total sales remained flat at $13,074 million year over year, missing the Zacks Consensus Estimate of $13,097.8 million, with average price changes positively impacting the top line by 2.6% while total volumes remained unchanged [2] Financial Performance - Gross profit for the quarter was $600 million, down from $866 million in the same period last year [3] - Adjusted operating income increased by 27% to $515 million from $406 million year over year, with the adjusted operating margin expanding to 3.8% from 3.1% [3] Segment Performance - **Beef**: Sales increased to $5,196 million from $4,954 million, with volumes down 1.4% and average prices up 8.2% [4] - **Pork**: Sales decreased to $1,244 million from $1,486 million, with volumes down 3.8% and average prices up 4.3% [4] - **Chicken**: Sales improved to $4,141 million from $4,065 million, with sales volumes growing 3% and average prices down 1.1% [5] - **Prepared Foods**: Sales were $2,396 million, down from $2,404 million, with volumes dipping 2.6% and average prices rising 2.3% [5] - **International/Other**: Sales were $566 million compared to $580 million, with volumes down 1.5% and average sales prices down 0.9% [6] Financial Position - The company ended the quarter with cash and cash equivalents of $992 million, long-term debt of $8,172 million, and total shareholders' equity of $18,531 million [7] - Liquidity stood at $3.2 billion, expected to remain above the minimum target of $1 billion for fiscal 2025, with projected capital expenditure of $1-$1.2 billion [8] Future Outlook - The USDA projects a 1% increase in domestic protein production for fiscal 2025 compared to fiscal 2024 [10] - For fiscal 2025, Tyson Foods anticipates total revenue growth to be flat to a 1% increase, with adjusted operating income expected in the range of $1.9-$2.3 billion [12] - Segment-wise, adjusted operating income projections include a loss of $0.4-$0.2 billion for Beef, and profits of $0.1-$0.2 billion for Pork, $1-$1.3 billion for Chicken, and $0.9-$1.1 billion for Prepared Foods [13]

Core Insights - Tyson Foods Inc (NYSE:TSN) experienced a 9.5% decline in stock price, trading at $54.99, despite reporting better-than-expected fiscal second-quarter earnings driven by strong chicken sales, although profits decreased year-over-year [1] - The company is facing its worst daily percentage drop since May 2023, with stock prices at their lowest since January 2023, and trading below all short- and long-term trendlines [2] - Analysts have not yet provided commentary on the results, but the majority hold a "hold" rating, with a consensus 12-month price target of $66.49, which is significantly above current trading levels [3] Financial Performance - Fiscal second-quarter earnings exceeded expectations, primarily due to robust chicken sales, but overall revenue fell short of estimates [1] - Profits for the quarter decreased compared to the same period last year [1] Market Activity - The stock is currently below all moving averages from 20 to 320 days, indicating a bearish trend [2] - Options trading shows a significant increase in activity, with 2,418 calls and 6,454 puts traded, which is 3.6 times the average daily options volume [2] Analyst Ratings - Seven analysts currently cover Tyson Foods, with a majority rating the stock as "hold" and only two providing a "buy" rating [3] - The consensus price target of $66.49 suggests a premium compared to the current stock price [3]

Tyson Foods (TSN) reported $13.07 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 0%. EPS of $0.92 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $13.1 billion, representing a surprise of -0.18%. The company delivered an EPS surprise of +8.24%, with the consensus EPS estimate being $0.85.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Tyson Foods (TSN) Q2 2025 Earnings Call May 05, 2025 09:00 AM ET Company Participants Sean Cornett - VP - Finance & Head of Investor RelationsDonnie King - President and Chief Executive OfficerCurt Calaway - Chief Financial OfficerDevin Cole - Group President - Poultry & Global Business UnitPeter Galbo - Director - Equity ResearchBrady Stewart - Group President, Prepared Foods, Beef & Pork and Chief Supply Chain OfficerKen Goldman - Managing DirectorBenjamin Theurer - Managing DirectorPooran Sharma - Managi ...

Supplemental Information Q2 Fiscal 2025 May 5, 2025 Forward-Looking Statements Certain information in this presentation constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2025, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, r ...

Financial Performance - Sales increased by 1.2%, or $306 million, in the first six months of fiscal 2025, driven by higher sales in the Beef and Chicken segments, despite a 2.6% decline in the second quarter due to $343 million in legal contingency accruals[133] - Operating income for the second quarter of fiscal 2025 was $100 million, down 68% compared to the same period in fiscal 2024, primarily due to lower income in the Beef and Pork segments[133] - Operating income for the first six months of fiscal 2025 was $680 million, up 25% compared to the first six months of fiscal 2024, supported by higher income in the Chicken segment[135] - Net income attributable to Tyson for the second quarter of fiscal 2025 was $7 million, down from $145 million in the same period of fiscal 2024, resulting in a diluted earnings per share of $0.02 compared to $0.41[161] - Total sales for the second quarter of fiscal 2025 were $13.074 billion, slightly up from $13.072 billion in the second quarter of fiscal 2024, with total sales for the first six months reaching $26.697 billion, compared to $26.391 billion in the prior year[163] Segment Performance - The Beef segment reported sales of $5.196 billion for the second quarter of fiscal 2025, an increase of 4.9% from $4.954 billion in the same quarter of fiscal 2024, while the operating loss for this segment was $258 million[170] - The Pork segment experienced a sales decline of 16.3% to $1.244 billion in the second quarter of fiscal 2025, with an operating loss of $195 million, compared to a loss of $1 million in the same period of fiscal 2024[172] - The Chicken segment's sales increased by 1.9% to $4.141 billion in the second quarter of fiscal 2025, with operating income rising to $262 million from $158 million in the same quarter of fiscal 2024[175] - Prepared Foods segment sales decreased slightly to $2.396 billion in the second quarter of fiscal 2025, down from $2.404 billion in the same period of fiscal 2024, with operating income increasing to $244 million[177] Cost and Expenses - Cost of sales increased by $268 million in the second quarter of fiscal 2025, driven by higher input costs, particularly an increase of approximately $470 million in cattle costs in the Beef segment[146] - Selling, general and administrative expenses decreased by $131 million in the second quarter of fiscal 2025, primarily due to lower marketing and employee costs[149] - The company recognized $343 million pretax related to legal contingency accruals in the second quarter of fiscal 2025, impacting net income significantly[164] Cash Flow and Liquidity - Cash provided by operating activities for the first six months of fiscal 2025 was $846 million, a decrease of $331 million compared to the first six months of fiscal 2024[184] - Net cash used for investing activities was $414 million for the first six months of fiscal 2025, compared to $621 million in the same period of fiscal 2024[187] - At March 29, 2025, total liquidity was $3.242 billion, including cash and cash equivalents of $992 million and a revolving credit facility of $2.25 billion[189] - The company intends to pay current debt of $896 million with existing cash balance and cash generated from operating activities[192] Debt and Interest - The current ratio was 1.7 to 1 at March 29, 2025, down from 2.0 to 1 at September 28, 2024, primarily due to decreased cash and increased current debt[201] - The company had variable rate debt of $781 million with a weighted average interest rate of 6.2% as of March 29, 2025, and a hypothetical 10% increase in interest rates would raise annualized interest expense by approximately $5 million[216] - The company reported fixed-rate debt of $8,287 million with a weighted average interest rate of 4.8% as of March 29, 2025, and a hypothetical 10% decrease in interest rates would increase the fair value of this debt by approximately $240 million[217] - The company is required to maintain a minimum interest expense coverage ratio as part of its debt covenants[204] - The company is in compliance with all debt covenants as of March 29, 2025, and expects to maintain compliance[204] Market and Economic Conditions - The company plans to continue analyzing the impact of supply chain and tariff changes on pricing and demand for its products in the coming months[137] - The company continuously evaluates macro-economic conditions, including inflationary pressures and rising interest rates, which could impact its operations and financial results[208] - The company has foreign exchange exposure primarily from receivable and payable balances in currencies such as the Brazilian real and the British pound, with a hypothetical 10% change in foreign exchange rates impacting pretax income by $24 million as of March 29, 2025[219] Operational Initiatives - The company initiated a network optimization plan, incurring $43 million in charges in the second quarter and $116 million in the first six months of fiscal 2025, aimed at optimizing global operations[140] - The Beef segment faced limited supply of market-ready cattle and increased costs, while the Chicken segment benefited from reduced feed ingredient costs[136] - The company uses derivative financial instruments to manage commodity price risks, with sensitivity analyses indicating potential changes in fair value due to market price fluctuations[214]

Financial Performance - Sales for the second quarter of 2025 were $13,074 million, flat compared to the prior year, with legal contingency accruals reducing sales by $343 million, or 2.6%[6] - Adjusted operating income for the second quarter increased by 27% to $515 million, while GAAP operating income decreased by 68% to $100 million[6] - Adjusted net income per share attributable to Tyson was $0.92, up 48% from the prior year, while GAAP EPS was $0.02, down 95%[6] - Total company adjusted operating margin was 3.8% for the second quarter, compared to 3.1% in the prior year[8] - Sales for the three months ended March 29, 2025, were $13,074 million, a slight increase from $13,072 million in the same period last year, resulting in a sales growth of 1.2% for the six months ended[23] - Gross profit for the three months ended March 29, 2025, was $600 million, with a gross profit margin of 4.6%, down from 6.6% in the same period last year[23] - Operating income decreased to $100 million for the three months ended March 29, 2025, compared to $312 million in the same period last year, reflecting an operating margin of 0.8%[23] - Net income attributable to Tyson for the three months ended March 29, 2025, was $7 million, a significant decrease from $145 million in the same period last year, resulting in a net income margin of 0.1%[23] - The total adjusted operating income for the six months ended March 29, 2025, was $1,174 million, up from $817 million for the same period in 2024[36] - Tyson Foods' EBITDA for the six months ended March 29, 2025, was $1,391 million, compared to $1,273 million for the same period in 2024, reflecting a year-over-year increase of 9.3%[38] Future Projections - For fiscal 2025, Tyson anticipates total company adjusted operating income between $1.9 billion and $2.3 billion[15] - The company expects sales to be flat to up 1% in fiscal 2025, including the $343 million reduction due to legal contingency accruals[16] - Capital expenditures are projected to be between $1.0 billion and $1.2 billion for fiscal 2025[17] - Free cash flow is expected to be between $1.0 billion and $1.6 billion for fiscal 2025[20] - The adjusted effective tax rate is expected to approximate 25% for fiscal 2025[21] Cash Flow and Liquidity - Liquidity as of March 29, 2025, was $3.2 billion, expected to remain above the minimum target of $1.0 billion[19] - Cash provided by operating activities for the six months ended March 29, 2025, was $846 million, down from $1,177 million in the same period last year[27] - Cash and cash equivalents at the end of the period were $992 million, a decrease from $2,182 million at the end of the previous period[27] - Operating cash flow for the six months ended March 29, 2025, was $846 million, down from $1,177 million for the same period in 2024, representing a decrease of approximately 28.2%[40] - Free cash flow for the six months ended March 29, 2025, was $382 million, a decline of 31.3% compared to $556 million for the same period in 2024[40] Debt and Assets - Total assets decreased to $36,280 million as of March 29, 2025, from $37,100 million as of September 28, 2024[25] - Current liabilities increased to $5,494 million as of March 29, 2025, compared to $4,787 million as of September 28, 2024[25] - Tyson Foods' total gross debt as of March 29, 2025, was $9,787 million, with a net debt of $8,060 million[38] - The ratio of gross debt to EBITDA was reported at 3.4x for the six months ended March 29, 2025, compared to 3.0x for the previous year[38] Operational Insights - The company incurred $343 million in legal contingency accruals during the second quarter of 2025, significantly impacting net income[34] - The network optimization plan charges amounted to $116 million for the six months ended March 29, 2025, contributing to the overall operating income adjustments[36] - The company reported a significant increase in operating income from chicken products, totaling $312 million for the second quarter ended March 29, 2025[36] - The company faced $54 million in restructuring and related charges during the second quarter of 2024, impacting overall financial performance[34] Taxation - The effective tax rate for the three months ended March 29, 2025, was 51.0%, significantly higher than 26.9% in the same period last year[23] Dividends - Dividends declared per share for Class A and Class B were $0.500 and $0.450 respectively, compared to $0.490 and $0.441 in the same period last year[23] Workforce and Corporate Responsibility - Tyson Foods had approximately 138,000 team members as of September 28, 2024, indicating a stable workforce size[41] - The company is committed to providing high-quality food safely and sustainably, aligning with its purpose of feeding the world like family[41] Communication and Risks - A conference call to discuss financial results is scheduled for May 5, 2025, at 9 a.m. Eastern, with a replay available until June 5, 2025[42] - Forward-looking statements indicate potential impacts from global pandemics, market conditions, and consumer preferences on future performance[43] - The company faces risks related to livestock diseases, input costs, and competition from alternative proteins, which could affect operations[43] - Tyson Foods emphasizes the importance of maintaining good relationships with team members and contract farmers to ensure operational stability[43] - The company is focused on leveraging brand value propositions and adapting to changes in consumer trends and preferences[43] - Financial information and updates can be accessed through the Tyson Investor Relations website, ensuring transparency for investors[42]