Tyson Foods’ stock soars 5% after profit beat offsets fifth straight sales miss

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Tyson Foods Inc.’s stock rose 5% early Monday, after the parent of food brands Tyson, Hillshire Farm, Jimmy Dean and Ball Park beat profit estimates for its fiscal first quarter, overshadowing a fifth straight sales miss.

The Springdale, Ark.-based company
posted net income of $107 million, or 30 cents a share, for the quarter to Dec. 30, down from $316 million, or 88 cents a share, in the year-earlier period. Adjusted per-share earnings came to 69 cents, ahead of the 41-cent FactSet consensus.

Sales rose to $13.319 billion from $13.260 billion a year ago, just below the $13.338 billion FactSet consensus.

Overall, average prices rose 0.4% and volumes were flat. That improved from the prior quarter, when average prices declined 1.4% from a year ago and volume was down 0.6%. That was the third straight quarter of price declines and the first drop in volume since the fiscal third quarter of 2022.

By segment, beef prices rose 10.5%, as volumes fell 4.1%, while sales rose to $5.023 billion from $4.723 billion a year ago.

Pork sales fell to $1.517 billion from $1.529 billion as average prices fell 8.5%. and volumes rose 7.7%.

Chicken sales fell to $4.033 billion from $4.263 billion as average prices fell 3.9% and volumes fell 1.5%. Prepared-foods sales rose to $2.453 billion from $2.538 billion as average prices fell 2.3% and volume rose 2.5%.

In the company’s international business, prices fell an average of 7.1%, as volumes rose 2.2%. Sales fell to $582 million from $612 million.

The company said it expects sales to be “relatively flat” in fiscal 2024 versus the year earlier, while FactSet is expecting a decline.

Tyson expects to spend $1.0 billion to $1.5 billion on capex.

The stock has fallen 12% in the last 12 months, while the S&P 500
has gained 19.9%.

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