A Weak Forecast Can't Sink Tyson Foods (TSN) Stock

Investing

Published: November 13, 2023 10:10 am

Last Updated: November 14, 2023 6:04 am

Tyson Foods Inc. (NYSE: TSN) is the country’s largest producer of chicken and one of the largest producers of pork and beef. Tyson Foods stock traded down more than 5% in Monday’s premarket session but was trading higher at the opening bell.

Earnings report

Tyson reported fourth fiscal quarter sales of $13.35 billion, down 2.8% year over, and a net loss of $443 million compared to a profit of $537 million in the year-ago quarter. For the full 2023 fiscal year that ended on October 1, Tyson reported a net loss of $649 million compared to net income of $4.15 billion in 2022.

Adjusted earnings per share came in more than 27% above the consensus estimate of $0.29 but were far below last year’s fourth-quarter earnings of $1.63 per share. Adjusted operating income (AOI) of $236 million fell 71% year over year. Tyson took a $333 million impairment charge in its beef segment, where AOI fell from $391 million in the year-ago quarter to $17 million.

The company’s prepared food business was a bright spot: sales rose 1.6% and AOI rose 13.7%.

To help soften the blows, the company raised its annual dividend from $1.92 per share to $1.96.

Meat sales floundering

Tyson expects challenges in the beef industry to continue in fiscal 2024. The company forecast AOI in the company’s beef segment in a range from break-even to a loss of $400 million compared to $233 million in 2023.

Tyson forecast revenue to be flat year over year. It also believes AOI will rise from $933 million in fiscal 2023 to a range of $1.0 to $1.5 billion in 2024. A $77 million loss in the chicken segment is forecast to rise to AOI of $400 to 700 million. AOI in the pork segment is forecast to break even after posting a loss of $128 million in 2023.

The prepared foods segment posted AOI of $889 million in 2023 and next year’s forecast calls for AOI in a range of $800 million to $1 billion.

Shortly after Monday’s opening bell, Tyson Foods stock had reversed its premarket losses. The stock traded up by about 2% at $48.00 in a 52-week range of $44.94 to $68.76.

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.