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Tyson (TSN) Up 3.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Tyson Foods (TSN - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tyson due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Tyson Foods, Inc. before we dive into how investors and analysts have reacted as of late.
Tyson Foods reported third-quarter fiscal 2025 results, with the top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 91 cents per share, which topped the Zacks Consensus Estimate of 72 cents. The bottom line jumped 4.6% from the year-ago quarter’s reported figure of 87 cents.
Total sales of $13,884 million rose 4% year over year. The top line surpassed the Zacks Consensus Estimate of $13,628 million. Average price changes had a 3.7% positive impact on the top line, while total volumes dipped 0.1% year over year. Solid gains from the multi-protein portfolio and operational excellence bolstered top and bottom-line improvement.
The gross profit in the quarter was $1.1 billion, up from the $878 million reported in the year-ago period.
Tyson Foods’ adjusted operating income rose 2.9% to $505 million from the $491 million reported in the year-ago period. The adjusted operating margin fell 10 basis points year over year to 3.6%.
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,603 million from $5,241 million reported in the year-ago quarter. Volumes fell 3.1%, and the average price jumped 10% in the segment.
Pork: Sales in the segment rose to $1,506 million from $1,462 million reported in the year-ago quarter. Volumes grew 1.5% but the average price fell 1.6%.
Chicken: Sales in the segment improved to $4,220 million from $4,076 million reported in the year-ago quarter. Volumes grew 2.4% and the average price was up 1.1%.
Prepared Foods: Sales in the segment came in at $2,515 million, up from $2,432 million reported in the year-ago quarter. Volumes dipped 2.3% and the average price rose 5.7%.
International/Other: Sales in the segment were $557 million compared with $582 million reported in the year-ago quarter. Volumes fell 0.8%, whereas the average sales price declined 3.5%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1.5 billion, long-term debt of $8.2 billion and total shareholders’ equity (including non-controlling interests) of $18.5 billion. For the nine months ended June 28, 2025, cash provided by operating activities amounted to $846 million.
Liquidity was $4 billion as of June 28. Management expects total liquidity to stay above the company’s minimum target of $1 billion in fiscal 2025. Tyson Foods projects capital expenditure at or below $1.0 billion for fiscal 2025, involving investments in profit-improvement projects and projects for maintenance and repair. Free cash flow in fiscal 2025 is expected to be in the range of $1-$1.3 billion.
What to Expect From TSN in FY25?
For fiscal 2025, the United States Department of Agriculture (USDA) suggests domestic protein production (beef, pork, chicken and turkey) to be relatively flat from the fiscal 2024 level.
For the Beef segment, the USDA projects domestic protein production to dip nearly 2% year over year, with an adjusted operating loss of $375-$475 million in fiscal 2025. For Pork, the USDA projects domestic production to grow slightly, with adjusted operating income of $175-$200 million. For Chicken, the USDA expects domestic protein production to grow about 2% year over year and adjusted operating income of $1.3-$1.4 billion.
For Prepared Foods, management projects adjusted operating income of $925 million-1 billion for fiscal 2025, while for International/Other, it expects improved results from foreign operations on an adjusted basis during fiscal 2025.
Total company revenue growth is anticipated in the range of 2-3% in fiscal 2025 compared with the fiscal 2024 level. Adjusted operating income is envisioned in the $2.1-$2.3 billion band. It forecasts net interest expenses to be $375 million and the adjusted effective tax rate to be nearly 25% for fiscal 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5.35% due to these changes.
VGM Scores
At this time, Tyson has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Tyson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Tyson (TSN) Up 3.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Tyson Foods (TSN - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tyson due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Tyson Foods, Inc. before we dive into how investors and analysts have reacted as of late.
Tyson Foods' Q3 Earnings Beat Estimates, Sales Rise Y/Y
Tyson Foods reported third-quarter fiscal 2025 results, with the top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 91 cents per share, which topped the Zacks Consensus Estimate of 72 cents. The bottom line jumped 4.6% from the year-ago quarter’s reported figure of 87 cents.
Total sales of $13,884 million rose 4% year over year. The top line surpassed the Zacks Consensus Estimate of $13,628 million. Average price changes had a 3.7% positive impact on the top line, while total volumes dipped 0.1% year over year. Solid gains from the multi-protein portfolio and operational excellence bolstered top and bottom-line improvement.
The gross profit in the quarter was $1.1 billion, up from the $878 million reported in the year-ago period.
Tyson Foods’ adjusted operating income rose 2.9% to $505 million from the $491 million reported in the year-ago period. The adjusted operating margin fell 10 basis points year over year to 3.6%.
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,603 million from $5,241 million reported in the year-ago quarter. Volumes fell 3.1%, and the average price jumped 10% in the segment.
Pork: Sales in the segment rose to $1,506 million from $1,462 million reported in the year-ago quarter. Volumes grew 1.5% but the average price fell 1.6%.
Chicken: Sales in the segment improved to $4,220 million from $4,076 million reported in the year-ago quarter. Volumes grew 2.4% and the average price was up 1.1%.
Prepared Foods: Sales in the segment came in at $2,515 million, up from $2,432 million reported in the year-ago quarter. Volumes dipped 2.3% and the average price rose 5.7%.
International/Other: Sales in the segment were $557 million compared with $582 million reported in the year-ago quarter. Volumes fell 0.8%, whereas the average sales price declined 3.5%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1.5 billion, long-term debt of $8.2 billion and total shareholders’ equity (including non-controlling interests) of $18.5 billion. For the nine months ended June 28, 2025, cash provided by operating activities amounted to $846 million.
Liquidity was $4 billion as of June 28. Management expects total liquidity to stay above the company’s minimum target of $1 billion in fiscal 2025. Tyson Foods projects capital expenditure at or below $1.0 billion for fiscal 2025, involving investments in profit-improvement projects and projects for maintenance and repair. Free cash flow in fiscal 2025 is expected to be in the range of $1-$1.3 billion.
What to Expect From TSN in FY25?
For fiscal 2025, the United States Department of Agriculture (USDA) suggests domestic protein production (beef, pork, chicken and turkey) to be relatively flat from the fiscal 2024 level.
For the Beef segment, the USDA projects domestic protein production to dip nearly 2% year over year, with an adjusted operating loss of $375-$475 million in fiscal 2025. For Pork, the USDA projects domestic production to grow slightly, with adjusted operating income of $175-$200 million. For Chicken, the USDA expects domestic protein production to grow about 2% year over year and adjusted operating income of $1.3-$1.4 billion.
For Prepared Foods, management projects adjusted operating income of $925 million-1 billion for fiscal 2025, while for International/Other, it expects improved results from foreign operations on an adjusted basis during fiscal 2025.
Total company revenue growth is anticipated in the range of 2-3% in fiscal 2025 compared with the fiscal 2024 level. Adjusted operating income is envisioned in the $2.1-$2.3 billion band. It forecasts net interest expenses to be $375 million and the adjusted effective tax rate to be nearly 25% for fiscal 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5.35% due to these changes.
VGM Scores
At this time, Tyson has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Tyson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.