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Jun 29, 2024
Tyson Foods Q3 2024 Earnings Report
Tyson Foods' Q3 2024 earnings showcased operational improvements, driving profitability year-over-year.
Key Takeaways
Tyson Foods reported a 1.6% increase in sales to $13.353 billion and an adjusted operating income of $491 million for Q3 2024, marking the highest adjusted operating income in the last seven quarters. The company's disciplined actions and focus on fundamentals drove a positive turnaround, with strong free cash flow generation.
Sales increased by 1.6% year-over-year, reaching $13.353 billion.
GAAP operating income improved significantly, reaching $341 million, a $691 million increase from the previous year.
Adjusted operating income surged by 174% year-over-year, totaling $491 million.
Adjusted EPS rose to $0.87, a 480% increase compared to the prior year.
Tyson Foods
Tyson Foods
Tyson Foods Revenue by Segment
Revenue by Segment
Beef Revenue
CapyFin.comPork Revenue
CapyFin.comChicken Revenue
CapyFin.comPrepared Foods Revenue
CapyFin.comInternational/Other Revenue
CapyFin.com Forward Guidance
Tyson Foods anticipates relatively flat sales for fiscal year 2024 compared to fiscal year 2023. The company expects capital expenditures between $1.2 billion and $1.3 billion and net interest expense to approximate $395 million. The adjusted effective tax rate is projected to be 23-24%.
Positive Outlook
- USDA projects domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2023 levels.
- Anticipate adjusted operating income of $100 million to $200 million in fiscal 2024 for Pork.
- Anticipate adjusted operating income of $850 million to $950 million for fiscal 2024 for Chicken.
- We anticipate adjusted operating income of $850 million to $950 million in fiscal 2024 for Prepared Foods.
- We anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis.
Challenges Ahead
- USDA projects domestic beef production will decrease approximately 2% in fiscal 2024 as compared to fiscal 2023.
- We anticipate adjusted operating loss between ($400) million and ($300) million in fiscal 2024 for Beef.
- USDA projects chicken production will be flat in fiscal 2024 as compared to fiscal 2023.
- Expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023.
- We anticipate using existing liquidity to retire the $1.25 billion senior notes due August 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income