Tyson Foods Q3 2024 Earnings Report
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
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