Sales rose nearly 2% year-over-year to $13.57 billion, higher than Wall Street’s estimate of $13.43 billion.
Shares of America’s largest meat company Tyson Foods ($TSN) soared nearly 10% on Tuesday after the firm reported strong fourth-quarter earnings.
Sales rose nearly 2% year-over-year (YoY) to $13.57 billion, higher than Wall Street’s estimate of $13.43 billion. Earnings per share (EPS) came in at $0.92, significantly higher than an estimate of $0.71. The firm reported a net income of $357 million versus a net loss of $450 million in the same quarter a year ago.
CEO Donnie King said, “Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders.”
The company cited USDA projections that chicken production will increase approximately 3% in fiscal 2025 as compared to fiscal 2024. “We anticipate adjusted operating income of $1.0 billion to $1.2 billion for fiscal 2025,” it said.
Total company adjusted operating income is expected to come in at $1.8 billion to $2.2 billion for fiscal 2025 while sales is expected to come down 1% to flat in fiscal 2025 as compared to fiscal 2024.
Tyson Foods also expects capital expenditures, including investments in profit improvement projects as well as projects for maintenance and repair, between $1.0 billion and $1.2 billion for fiscal 2025.
Meanwhile, the Board of Directors increased the quarterly dividend previously declared on Aug. 8, 2024, to $0.50 per share on its Class A common stock and $0.45 per share on its Class B common stock. The increased quarterly dividend is payable on Dec. 13, 2024, to shareholders of record at the close of business on Nov. 29, 2024.
Following the earnings release, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (82/100) from ‘neutral’ a day ago, accompanied by ‘extremely high’ message volumes.
One user expressed a positive take on the earnings beat.
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