It has been about a month since the last earnings report for Tyson Foods (TSN). Shares have lost about 2.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Tyson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Tyson Foods' Q4 Earnings Top, Operating Income More Than Doubles

Tyson Foods posted fourth-quarter fiscal 2024 adjusted earnings of 92 cents per share, which crushed the Zacks Consensus Estimate of 64 cents. The bottom line increased considerably from the year-ago quarter’s reported figure of 37 cents. Total sales of $13,565 million increased 1.6% from the year-ago quarter figure. The top line surpassed the Zacks Consensus Estimate of $13,326 million. Average price changes had a 0.2% positive impact on the top line, while total volumes grew 0.5% year over year.

The gross profit in the quarter was $1,060 million, up significantly from the $459 million reported in the year-ago period. Tyson Foods’ adjusted operating income soared considerably to $512 million from the $236 million reported in the year-ago period. The adjusted operating margin expanded to 3.8% from 1.8% recorded in the year-ago quarter.

Decoding TSN’s Segmental Details

Beef: Sales in the segment increased to $5,261 million from $5,029 million reported in the year-ago quarter. Volumes rose 3.7%, and the average price jumped 0.9% in the segment.

Pork: Sales in the segment declined to $1,438 million from $1,494 million reported in the year-ago quarter. Volumes rose 3.2%, but the average price dropped 6.9%.

Chicken: Sales in the segment improved to $4,251 million from $4,155 million reported in the year-ago quarter. Sales volumes decreased 0.7%, while the average price was up 0.2%.

Prepared Foods: Sales in the segment came in at $2,472 million, down from $2,502 million reported in the year-ago quarter. Prepared Foods’ sales volume dipped 1.4%, and the average price rose 0.2%.

International/Other: Sales in the segment were $609 million, down from $636 million reported in the year-ago quarter. Volumes jumped 1.3%, whereas the average sales price fell 5.5%.

Tyson Foods’ Other Financial Updates

The company exited the quarter with cash and cash equivalents of $1,717 million, long-term debt of $9,713 million and total shareholders’ equity (including non-controlling interests) of $18,514 million. For the 12 months ended Sep. 28, 2024, cash provided by operating activities amounted to $2,590 million.

Liquidity was nearly $4 billion as of Sep. 28. Management expects liquidity to stay above the company’s minimum target of $1 billion in fiscal 2025. Tyson Foods projects capital expenditure to be nearly $1-$1.2 billion for the fiscal. Free cash flow in fiscal 2025 is expected to be greater than dividends.

With effect from Nov. 8, management hiked its quarterly dividend to 50 cents per share for its Class A shares and 45 cents for Class B shares. The raised dividend is payable on Dec. 13, 2024 to shareholders of record as of Nov. 29. This results in an annual dividend rate of $2.00 for Class A and $1.80 for Class B shares in fiscal 2025, representing a 2% hike from the fiscal 2024 levels.