Tyson Foods Q4 Results Top Estimates
2024-11-12
2446
(fxcue news) - Meat processor Tyson Foods, Inc. (TSN) reported Tuesday a profit for the fourth quarter compared to a loss last year, reflecting improved margins and sales growth. Both adjusted earnings per share and quarterly sales topped analysts' expectations. However, the company provided weak sales guidance for the full-year 2025.
In Tuesday's pre-market trading on Nasdaq, TSN is trading at $62.27, up $3.46 or 5.88 percent.
"We delivered significant improvement in profitability for the fourth quarter and full year. We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio," said Donnie King, President and CEO of Tyson Foods.
For the fourth quarter, the Springdale, Arkansas-based company reported net Income attributable to the company of $357 million or $1.00 per share, compared to a net loss of $450 million or $1.31 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $0.92 per share, compared to $0.37 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter increased 1.6 percent to $13.57 billion from $13.35 billion in the same quarter last year. Analysts expected revenue of $13.39 billion for the quarter.
Beef sales increased to $5.26 billion from $5.03 billion and Chicken sales improved to $4.25 billion from $4.16 billion last year, while Pork sales decreased to $1.44 billion from $1.49 billion and Prepared Foods sales declined to $2.47 billion from $2.50 billion last year.
Operating margin for the quarter improved 740 basis points to 3.9 percent and adjusted margin expanded 200 basis points to 3.8 percent from a year ago.
"Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders. Our multi-protein, multi-channel portfolio, combined with our best-in-class team, iconic brands and focus on operational excellence positions us well for Fiscal 2025 and beyond," King added.
Looking ahead to fiscal 2025, the company expects sales to be between down 1 percent and flat from fiscal 2024, implying sales between $52.82 billion and $53.31 billion. The Street is looking for revenues of $54.09 billion for the year.
The company also expects capital expenditures between $1.0 billion and $1.2 billion for fiscal 2025.
On Friday, the Board of Directors increased the quarterly dividend by 2 percent to $0.50 per share on Class A common stock and $0.45 per share on Class B common stock, both payable on December 13, 2024, to shareholders of record at the close of business on November 29, 2024.
The Board also declared on November 8, 2024 a quarterly dividend of $0.50 per share on Class A common stock and $0.45 per share on our Class B common stock, payable on March 14, 2025, to shareholders of record at the close of business on February 28, 2025.
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