In a press release dated November 12th Tyson Foods Inc. (TSN) announced results for the 4th quarter of FY 2024 ending September 28th 2024. TSN posted higher GAAP earnings ($1.00) than consensus estimates ($0.64) and exceeded estimates on revenue by 1.8 percent, attributed to performance in the Chicken Segment
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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Fourth Quarter Ending
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September 28th 2024
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September 30th
2023
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Difference (%)
|
|
Sales:
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$13,565,000
|
$13,348,000
|
+1.6
|
|
Gross profit:
|
$1,060,000
|
$459,000
|
+130.9
|
|
Operating income (loss):
|
$525,000
|
$(463,000)
|
+213.4
|
|
Pre-tax income (loss)
Net income (loss)
|
$475,000
$364,000
|
$(565,000)
$(443,000)
|
+185.4
+182.2
|
|
Diluted GAAP earnings per share
|
$1.00
|
$(1.31)
|
+176.3
|
|
Gross Margin (%)
|
7.8
|
3.4
|
+129.4
|
|
Operating Margin (%)
|
3.9
|
-3.4
|
+214.7
|
|
Profit Margin (%)
|
2.7
|
-3.3
|
+181.8
|
|
Long-term Debt and other liabilities:
|
$11,514,000
|
$9,189,000
|
+25.3
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
1.8
|
|
|
|
Return on Equity (%)
|
0.1
|
|
|
|
Operating Margin (%)
|
3.3
|
|
|
|
Profit Margin (%)
|
0
|
|
|
|
Total Assets* Sept. 28th ‘24/Sep.30th 2023
|
$37,100,000
|
$36,251,000
|
+2.3
|
|
Intraday Market Capitalization Nov. 12h 2024/Dec. 31st2023
|
$20,930,000
|
$19,090,000
|
+9.6
|
* Goodwill and intangibles 42.3 percent of total assets
For FY 2024 Tyson Foods earned $800 million on revenue of $53,309 million with a diluted GAAP EPS of $1.00. Comparable values for FY 2023 were a loss of $(648) million on revenue of $52,881 million with a negative EPS of $(1.87)
52-Week Range in Share Price of TSN: $45.38 to $66.88. 50-day Moving average, $60.19
Market Close: Monday November 11th $61.24. Open Tuesday November 12th post release, $62.50.
Forward P/E 15.6 Beta 0.8
The Chicken Segment attained sales of $4,251 million ($4,155 million in Q4 FY 2023) representing 31.3 percent of Company revenue. GAAP operating income attained $356 million in Q4 representing 69.5 percent of net Company operating income. Operating income in Q4 FY 2023 was $75 million. For the Chicken Segment the report stated:- “The USDA projects chicken production will be up three percent FY 2025”. Anticipated adjusted operating income for the segment was forecast at $1,000 to $1,200 million for FY 2025. Improvement in the Chicken Segment is attributed to lower feed cost and reduced operating expenses with consolidation following closure of six plants in four states.
For comparison among Tyson Foods’ business segments the adjusted operating income (loss) in Q4 2024 were respectively:- Pork, $(19) million; Beef, $(71) million; Prepared Foods $205 million and International & Other $3 million.
In commenting on results Donnie King, president and CEO stated. "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." He concluded "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."
Improved Q4 earnings raised TSN on a down market. The investors’ call stressed a ‘positive turnaround’ in Q4.
Guidance for FY 2025 included Revenue down one percent to flat from FY 2024. Adjusted operating income for the Company was projected at $1,800 million to $2,200 million with Prepared Foods contributing $900 to $1,100 million. Capital expenditure was projected at $1.0 to $1.2 billion.
In the Q2 2013 report Tyson Foods projected $1 billion in savings from the “Productivity Program” by the end of 2024 although this prediction was not confirmed as a quantitative value in the most recent quarterly report.