https://assets.capyfin.com/instruments/678fdc13234e27009c5d5821.png avatar
Tyson Foods
🇺🇸 NYSE:TSN
View Company
OverviewEarningsDividends
•
Dec 31, 2022

Tyson Foods Q1 2023 Earnings Report

Tyson Foods' Q1 2023 performance reflected a mixed outcome, with record sales growth offset by market challenges and operational inefficiencies, leading to a significant decrease in operating income and earnings per share.

Key Takeaways

Tyson Foods reported a 2.5% increase in sales to $13.26 billion for Q1 2023, but experienced a 68% decrease in operating income to $467 million and a 71% decrease in EPS to $0.88, impacted by market dynamics and operational inefficiencies.

Sales increased by 2.5% to $13.26 billion compared to the prior year.

GAAP operating income decreased by 68% to $467 million, while adjusted operating income also fell by 68% to $453 million.

GAAP EPS decreased by 71% to $0.88, and adjusted EPS decreased by 70% to $0.85.

The company repurchased 4.9 million shares for $313 million and maintained liquidity of $2.9 billion at the end of December 2022.

Total Revenue
$13.3B
Previous year: $12.9B
+2.5%
EPS
$0.85
Previous year: $2.87
-70.4%
Gross Profit
$968M
Cash and Equivalents
$654M
Previous year: $2.96B
-77.9%
Total Assets
$36.7B

Tyson Foods

Tyson Foods

Tyson Foods Revenue by Segment

Forward Guidance

For fiscal year 2023, Tyson Foods anticipates sales between $55 billion and $57 billion, with capital expenditures around $2.5 billion and net interest expense approximating $330 million. The company expects its adjusted effective tax rate to be around 24%.

Positive Outlook

  • USDA projects chicken production will increase approximately 3% in fiscal 2023 as compared to fiscal 2022.
  • We anticipate an adjusted operating margin of 8% to 10% in fiscal 2023 driven by volume growth, productivity and disciplined revenue management.
  • We anticipate improved results from our foreign operations in fiscal 2023.
  • We expect total liquidity, which was approximately $2.9 billion at December 31, 2022, to remain above our minimum liquidity target of $1.0 billion.
  • We believe we will exceed our aggregate $1 billion target in fiscal 2023, a year ahead of our plan.

Challenges Ahead

  • USDA projects domestic production will decrease approximately 5% in fiscal 2023 as compared to fiscal 2022.
  • We anticipate an adjusted operating margin of 2% to 4% in fiscal 2023 as margins are expected to decrease from historically high levels.
  • USDA projects domestic production will be relatively flat in fiscal 2023 as compared to fiscal 2022.
  • We anticipate adjusted operating margin of 0% to 2% in fiscal 2023.
  • We expect net interest expense to approximate $330 million for fiscal 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Tyson Foods