Tyson Foods ($TSN) reported impressive earnings growth for its fiscal fourth quarter, exceeding analysts' expectations for both revenue and profit. The results highlighted revenue growth to $13.57 billion for the quarter ending Sept. 28, an increase from $13.35 billion the previous year and above the analyst estimate of $13.43 billion on Capital IQ.
As a result, Tyson's shares surged 10% during morning trading. Adjusted earnings per share saw a significant jump to $0.92 from $0.37, surpassing the projected expectation of $0.69. Chief Financial Officer Curt Calaway commented that the fourth-quarter adjusted operating income, margin, and earnings per share were triple those from the same period last year, marking the company's best performance in eight quarters. The manufacturer of popular meat brands including Tyson, Jimmy Dean, and Ball Park noted a 3.7% increase in beef volume along with a 3.2% rise in pork.
However, volumes for chicken and prepared foods saw a slight decline of 0.7% and 1.4%, respectively. Looking ahead to 2025, Tyson anticipates a modest sales decline between 1% and flat as compared to fiscal 2024’s revenue of $53.31 billion, which itself was up 0.8% year-over-year. The market consensus estimates revenue could reach $54.13 billion this year. "We delivered significant improvement in profitability for the fourth quarter and full year," said Chief Executive Donnie King in a statement.
"We remain optimistic about our outlook and our ability to deliver long-term value to our shareholders." For fiscal 2025, the company projects adjusted operating income in the range of $1.8 billion to $2.2 billion. The growth is expected to be primarily driven by an operating income of $1 billion to $1.2 billion for chicken, $900 million to $1.1 billion for prepared foods, and $100 million to $200 million for pork.
Nonetheless, Tyson is bracing for an adjusted operating loss in the beef segment, estimated between $200 million and $400 million. Calaway noted that uncertainties persist in the beef division, particularly regarding the "timing and pacing of meaningful herd rebuild intentions.".