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Prepared Foods posted sales growth of 8.1% versus last year, driven by volume, channel mix, and pass-through pricing. COO Devin Cole said segment operating income was $338 million, up $16 million year-over-year, reflecting progress on a multi-year plan to enhance profitability. Cole also cited solid fill rates with “room to improve,” supported by improved S&OP processes and efficiencies across plants and distribution.In Q1, corporate expenses and amortization were lower by $20 million, or 7.7%, versus the p ...

Core Insights - Tyson Foods, Inc. (TSN) reported solid first-quarter fiscal 2026 results with top-line growth but a decline in bottom-line performance [1][10] Financial Performance - Adjusted earnings per share were 97 cents, missing the Zacks Consensus Estimate of $1.01, and down 15% from $1.14 in the prior year [2][10] - Total sales reached $14,313 million, a 5.1% increase year over year, surpassing the Zacks Consensus Estimate of $14,122 million [3][10] - Excluding a $150 million increase in legal contingency accruals, sales rose 6.2%, with average price changes contributing positively by 6.5%, while total volumes dipped 0.3% [3][10] - Gross profit was $808 million, down from $1,095 million in the year-ago period, and adjusted operating income decreased 13% to $572 million, with an adjusted operating margin of 4%, down 80 basis points year over year [4][10] Segment Performance - **Beef**: Sales increased to $5,771 million from $5,335 million, with volumes falling 7.3% and average prices rising 17.2% [5] - **Pork**: Sales declined slightly to $1,609 million from $1,617 million, with volumes growing 1.6% and average prices also increasing by 1.6% [5] - **Chicken**: Sales improved to $4,212 million from $4,065 million, with volumes up 3.7% but average prices down 0.1% [6] - **Prepared Foods**: Sales rose to $2,673 million from $2,473 million, with volumes growing 0.2% and average prices increasing by 7.9% [6] - **International/Other**: Sales were $582 million compared to $584 million, with volumes down 0.8% and average prices up 0.5% [7] Financial Position - The company ended the quarter with cash and cash equivalents of $1,278 million, long-term debt of $7,453 million, and total shareholders' equity of $18,163 million [8] - Cash provided by operating activities was $942 million, with liquidity at $4.5 billion, expected to remain above $1 billion in fiscal 2026 [8] Future Projections - Capital expenditures are projected between $700 million to $1 billion for fiscal 2026, focusing on profit-improvement and maintenance projects [9] - Adjusted free cash flow for the first quarter was $690 million, with expectations for fiscal 2026 ranging from $1.1 billion to $1.7 billion [9] - The USDA anticipates a 1% increase in domestic protein production for fiscal 2026, with specific projections for each segment, including a potential adjusted operating loss of $250-$500 million for Beef and adjusted operating income of $1,650-$1,900 million for Chicken [11][12][13]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - Tyson Foods, Inc. (TSN) has shown strong performance over the past year, with a gain of approximately 15%, primarily driven by improved investor sentiment regarding margins [1] Company Performance - The recent gains in Tyson Foods' stock have largely occurred in the last few months, indicating a shift in investor optimism [1] Investor Sentiment - Investors have become more optimistic about the company's margins, which has contributed to the stock's recent performance [1]

Core Insights - Tyson Foods reported revenue of $14.31 billion for the quarter ended December 2025, marking a year-over-year increase of 5.1% and exceeding the Zacks Consensus Estimate of $14.12 billion by 1.36% [1] - The company's EPS for the same period was $0.97, down from $1.14 a year ago, resulting in an EPS surprise of -3.96% compared to the consensus estimate of $1.01 [1] Financial Performance Metrics - Tyson's stock has returned +12.6% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change, and currently holds a Zacks Rank 3 (Hold) [3] - Year-over-year volume changes showed a decline of 0.3% overall, with specific categories such as Chicken increasing by 3.7% and Beef decreasing by 7.3% [4] - Sales figures for Chicken reached $4.21 billion, surpassing the $4.11 billion estimate, while Beef sales were $5.77 billion, exceeding the $5.64 billion estimate, reflecting increases of +3.6% and +8.2% year-over-year respectively [4] - Prepared Foods sales were reported at $2.67 billion, above the $2.59 billion estimate, indicating an +8.1% year-over-year change [4] - Pork sales were $1.61 billion, slightly below the $1.65 billion estimate, showing a -0.5% year-over-year change [4] - Adjusted Operating Income for Beef was reported at -$143 million, worse than the average estimate of -$94.14 million [4]

Financial Data and Key Metrics Changes - Total company sales grew 6.2% to $14.3 billion compared to the prior year, led by Beef with contributions from Prepared Foods, Chicken, and Pork [29][30] - First quarter segment operating income was $811 million, down 12% compared to the prior year, primarily due to the decline in the beef segment [30] - Adjusted earnings per share for the quarter were $0.97, down 15% compared to last year, influenced by a higher tax rate [31] Business Line Data and Key Metrics Changes - Prepared Foods segment sales increased by 8.1% year-over-year, with segment operating income reaching $338 million, up $16 million from the prior year [21][10] - Chicken segment operating income was $459 million, with a margin of 10.9%, driven by efficient marketing and promotional expenses [11][25] - Beef segment sales increased, but segment operating income declined due to higher cattle costs, reflecting ongoing challenges in the market [26] - Pork segment operating income margin increased by 220 basis points to 6.7%, supported by network optimization and operational efficiencies [27] Market Data and Key Metrics Changes - Retail branded products grew by 2.5% in volume and 3.6% in dollars, outperforming the broader food and beverage retail category [18] - The chicken segment saw a 3.6% year-over-year sales growth driven entirely by volume and strong consumer demand [24] - The international segment continued its momentum, contributing positively to overall performance [14] Company Strategy and Development Direction - The company is focused on becoming a diversified, protein-centric entity to capture growing demand for high-quality protein [8] - Strategic decisions include closing the Lexington, Nebraska facility and scaling back operations at the Amarillo, Texas plant to improve efficiency and align with long-term market outlook [12] - The company emphasizes operational excellence, brand investments, and innovation to capture market share [8][19] Management's Comments on Operating Environment and Future Outlook - Management expects tight cattle supplies to persist through 2026 and 2027, with chicken likely benefiting from changing consumer preferences [13] - The updated U.S. dietary guidelines validate the company's mission to provide high-quality protein, aligning public health priorities with consumer demand [14][16] - Management expresses confidence in the company's ability to navigate a dynamic market landscape and achieve growth [38] Other Important Information - The company has reduced gross debt by $1.4 billion over the last 12 months, improving its balance sheet and financial strength [33] - Free cash flow for the first quarter was approximately $700 million, significantly ahead of dividends for the quarter [33] Q&A Session Questions and Answers Question: Rationale behind the change in segment reporting - Management explained that the change to segment operating income was intentional to provide better visibility into business performance and to empower leaders to pursue volume growth without the burden of corporate overhead [42][43][46] Question: Prepared Foods pricing and input cost inflation - Management indicated that the 8% sales increase in Prepared Foods was due to a combination of channel mix and formula-based pass-through pricing, with pricing catching up to raw material costs [52][53] Question: Trends in the beef segment and capacity closures - Management acknowledged the dynamic situation in the beef segment, highlighting higher cattle costs and the impact of recent capacity closures on future profitability [63][64][66] Question: Updated views on the chicken industry - Management expressed confidence in the chicken market, expecting manageable production growth and strong demand, with Tyson well-positioned to capitalize on these trends [72][75]

Tyson Foods (NYSE:TSN) Q1 2026 Earnings call February 02, 2026 09:00 AM ET Company ParticipantsCurt Calaway - CFODevin Cole - COODonnie King - CEOJon Kathol - VP of Investor RelationsKristina Lambert - Chief Growth OfficerPeter Galbo - Director in Equity ResearchPooran Sharma - Managing Director of Equity ResearchConference Call ParticipantsAlexia Howard - Senior AnalystAndrew Strelzik - Senior AnalystBen Theurer - Mananging Director and Equity Research AnalystLeah Jordan - Equity Research AnalystMichael La ...

Financial Data and Key Metrics Changes - Total company sales grew by 6.2% to $14.3 billion compared to the prior year, driven by strong demand across multiple segments [23][24] - First quarter segment operating income was $811 million, down 12% year-over-year, primarily due to declines in the beef segment [24] - Adjusted earnings per share for the quarter were $0.97, down 15% compared to last year, influenced by a higher tax rate [24] Business Line Data and Key Metrics Changes - Prepared Foods segment sales increased by 8.1% year-over-year, with segment operating income rising to $338 million, up $16 million from the prior year [17][24] - Chicken segment achieved $459 million in segment operating income, maintaining a margin of 10.9%, driven by efficient marketing and promotional expenses [8][19] - Beef segment faced challenges, with sales increasing but segment operating income declining due to higher cattle costs [20][24] - Pork segment operating income margin increased by 220 basis points to 6.7%, supported by operational efficiencies [21] Market Data and Key Metrics Changes - Retail branded products grew by 2.5% in volume and 3.6% in dollars, outperforming the broader food and beverage retail category [13] - The chicken segment saw a 3.6% year-over-year sales growth driven entirely by volume and strong consumer demand [19] - The international segment continued to perform well, contributing positively to overall results [10] Company Strategy and Development Direction - The company is focused on becoming a diversified, protein-centric organization to capture growing demand for high-quality protein [5][10] - Strategic decisions were made to right-size the beef operations, including facility closures, to improve capacity utilization and align with long-term market outlooks [9][20] - The company is committed to operational excellence, innovation, and strategic capital deployment to strengthen its competitive position [5][10] Management Comments on Operating Environment and Future Outlook - Management expects tight cattle supplies to persist through 2026 and 2027, with chicken likely benefiting from changing consumer preferences [10][16] - The updated U.S. dietary guidelines are seen as a validation of the company's mission to provide high-quality protein, aligning public health priorities with consumer demand [11][12] - Management expressed confidence in the company's ability to navigate a dynamic market environment and achieve growth [31] Other Important Information - The company has made significant progress in reducing gross debt by $1.4 billion over the last 12 months, improving its balance sheet [25] - Free cash flow for the first quarter was approximately $700 million, well ahead of dividends for the quarter [25] Q&A Session Summary Question: Rationale behind segment reporting changes and free cash flow - Management explained that the change to segment operating income was intentional to provide better visibility and accountability for business leaders, allowing for improved decision-making [34][35][36] Question: Trends in the beef segment and impact of capacity closures - Management acknowledged the dynamic and volatile situation in the beef segment, highlighting the need for operational adjustments to improve efficiency and profitability [54][56] Question: Update on chicken industry outlook - Management indicated that the chicken market remains balanced, with strong demand and manageable supply growth projected for 2026 [62][64] Question: Corporate amortization decrease - The decrease in corporate expenses and amortization was attributed to a focus on overhead cost reductions, particularly team member-related costs [67]

Core Viewpoint - Tyson Foods (TSN.US) reported better-than-expected Q1 2026 results, highlighting significant beef price increases and strong chicken demand, reflecting persistent inflation in the U.S. food sector [1][5][6] Financial Performance - Tyson Foods achieved total revenue of $14.313 billion in Q1, exceeding Wall Street expectations with a year-over-year growth of 5.1% [2] - The beef segment saw an 8.2% revenue increase to $5.771 billion, with beef prices rising 17% year-over-year [2] - Adjusted earnings per share were approximately $0.97, a 15% decline year-over-year but above the analyst consensus of $0.95 [2] Business Segment Insights - The beef division recorded an adjusted operating loss of $143 million, which was weaker than analyst expectations, despite the 17% price increase supporting sales growth [2] - The chicken segment experienced a 3.6% revenue increase to $4.212 billion, with prices remaining stable compared to the previous year [2][5] Supply Chain Dynamics - The U.S. cattle supply is at its lowest level in 75 years, exacerbated by drought conditions and high feed costs, leading to reduced herd sizes [3][4] - Tyson's closure of a beef plant in Nebraska and reduction of operations in Texas aims to manage supply pressures and potentially lower beef prices [3][4] Market Trends - The demand for protein remains robust, with consumers increasingly turning to chicken as a more affordable protein option, which is expected to drive chicken prices upward [4][5] - Tyson's performance is indicative of the broader trend of persistent food inflation in the U.S., particularly in the beef sector, which is expected to maintain high price levels for an extended period [6]