Tyson Foods Inc.’s (NYSE: TSN) stock surged on Monday after it reported better-than-expected third‑quarter results. Adjusted earnings of 91 cents per share beat the average analyst estimate of 88 cents.
Revenue grew 4% year-over-year to $13.88 billion, topping the $13.54 billion estimate. Total sales volume declined 0.1% in the quarter, while average selling prices rose 3.7%, resulting in an overall 4% gain.
GAAP earnings dropped to 17 cents per share from 54 cents a year earlier, driven by a $343 million goodwill impairment in the Beef segment.
Adjusted operating income rose 3% to $505 million, while GAAP operating income fell 24% to $260 million. The company reported a GAAP operating margin of 1.9% and an adjusted margin of 3.6%.
Beef segment sales increased 6.9% to $5.6 billion. The segment posted a GAAP operating loss of $494 million and an adjusted loss of $151 million. Pork revenue rose 3% to $1.51 billion, delivering $36 million in adjusted operating income.
Chicken revenue climbed to $4.22 billion (+3.5%) with $345 million in adjusted operating income. Prepared Foods revenue reached $2.52 billion (+3.4%), producing $246 million in adjusted operating income.
International/Other posted $557 million in revenue and $29 million in adjusted income.
For the first nine months, sales grew 2.1% to $40.58 billion. Adjusted EPS rose 36% to $2.97, adjusted operating income grew 28% to $1.68 billion, while GAAP EPS declined 4% to $1.20. Adjusted EBITDA for the nine months reached $2.68 billion (+19% YoY).
Operating cash flow fell to $1.62 billion from $1.97 billion year‑ago; free cash flow declined to $929 million from $1.09 billion. Liquidity stood at $4.0 billion, and total debt was reduced by $722 million.
“Our third quarter results demonstrate the strength of our multi-protein, multi-channel portfolio and our relentless focus on operational excellence,” said Donnie King, President and CEO of Tyson Foods. “Delivering our fifth consecutive quarter of year-over-year growth across sales, adjusted operating income and adjusted earnings per share underscores the resilience of our business model. Looking ahead, we are confident in our ability to meet consumer needs, capitalize on protein demand and deliver long-term value to our shareholders.”
Outlook
Tyson raised full‑year fiscal 2025 sales guidance to $54.38 billion–$54.91 billion, up from $53.31 billion–$53.84 billion, ahead of the $54.01 billion consensus.
It reaffirmed expectations for adjusted operating income of $2.1 billion-$2.3 billion. Capital expenditures are projected at or below $1.0 billion.
Free cash flow is forecast at $1.0 billion–$1.3 billion. Net interest expense is expected to be around $375 million, with an adjusted effective tax rate of about 25%.
The U.S. Department of Agriculture projects domestic protein production (beef, pork, chicken, and turkey) will be relatively flat in fiscal 2025 compared with fiscal 2024.
Tyson anticipates an adjusted operating loss in its Beef segment of $475 million to $375 million, adjusted operating income for Pork of $175 million to $200 million, Chicken of $1.3 billion to $1.4 billion, Prepared Foods of $925 million to $1.0 billion, and total company adjusted operating income of $2.1 billion to $2.3 billion.
Price Action: At last check Monday, TSN shares were trading higher by 4.24% at $54.76.
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