August 14, 2024
Tyson Foods reports Q3 profit boosted by sales growth in most segments
Tyson Foods has announced a third-quarter profit following increased sales across nearly all its segments, Investopedia reported.
The company announced quarterly sales of US$13.35 billion, surpassing analysts' estimates. Sales increased in Tyson's beef, pork, and prepared foods divisions, while chicken sales experienced a slight decline.
Tyson reported a net income of US$191 million for the quarter, a significant improvement from the US$417 million loss recorded in the same period last year. However, this figure fell short of analysts' expectations as polled by Visible Alpha. When adjusted for one-time expenses such as plant closures and legal contingencies, Tyson's net income reached US$309 million, exceeding analysts' projections.
"Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business," said Tyson chief executive officer Donnie King. "In Q3, we delivered the highest adjusted operating income in the last seven quarters while also generating strong free cash flow."
Looking ahead to fiscal 2024, Tyson expects sales to remain "relatively flat" compared to fiscal 2023. According to the U.S. Department of Agriculture (USDA), domestic beef production is projected to decrease by about 2%, pork production is expected to increase by 3%, and chicken production is anticipated to remain stable.
Tyson Foods shares rose 2% at the opening bell to $62.46, bringing the stock's year-to-date increase to 16%.
- Investopedia
