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Tyson Foods, Inc. TSN reported second-quarter fiscal 2025 results, with the bottom line increasing year over year and surpassing the Zacks Consensus Estimate. The top line remained unchanged from the year-ago quarter’s reported figure and missed the Zacks Consensus Estimate. With consumer demand for protein remaining robust, TSN’s diversified multi-channel, multi-protein portfolio places it well to meet this need while solidifying its status as a leading global food company.
TSN’s Quarterly Performance: Key Insights
Tyson Foods posted adjusted earnings of 92 cents per share, which crushed the Zacks Consensus Estimate of 85 cents. The bottom line increased 48% from the year-ago quarter’s reported figure of 62 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total sales of $13,074 million remained flat year over year. The top line missed the Zacks Consensus Estimate of $13,097.8 million. Average price changes had a 2.6% positive impact on the top line, while total volumes remained flat year over year.
The gross profit in the quarter was $600 million, down from the $866 million reported in the year-ago period.
Tyson Foods’ adjusted operating income soared 27% to $515 million from the $406 million reported in the year-ago period. The adjusted operating margin expanded to 3.8% from 3.1% recorded in the year-ago quarter.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote
Decoding TSN’s Segmental Details
Beef: Sales in the segment increased to $5,196 million from $4,954 million reported in the year-ago quarter. Volumes fell 1.4%, and the average price jumped 8.2% in the segment.
Pork: Sales in the segment decreased to $1,244 million from $1,486 million reported in the year-ago quarter. Volumes fell 3.8%, but the average price increased 4.3%.
Chicken: Sales in the segment improved to $4,141 million from $4,065 million reported in the year-ago quarter. Sales volumes grew 3%, while the average price was down 1.1%.
Prepared Foods: Sales in the segment came in at $2,396 million, down from $2,404 million reported in the year-ago quarter. Volumes dipped 2.6%, and the average price rose 2.3%.
International/Other: Sales in the segment were $566 million compared with $580 million reported in the year-ago quarter. Volumes fell 1.5%, whereas the average sales price declined 0.9%.
Tyson Foods’ Other Financial Updates
The company exited the quarter with cash and cash equivalents of $992 million, long-term debt of $8,172 million and total shareholders’ equity (including non-controlling interests) of $18,531 million. For the six months ended March 29, 2025, cash provided by operating activities amounted to $846 million.
Liquidity was $3.2 billion as of March 29. Management expects liquidity to stay above the company’s minimum target of $1 billion in fiscal 2025. Tyson Foods projects capital expenditure to be $1-$1.2 billion for fiscal 2025. Free cash flow in fiscal 2025 is expected to be in the range of $1-$1.6 billion.