Tyson Foods Q3 Profit Surges

(RTTNews) - Meat processor Tyson Foods, Inc. (TSN) reported Monday a profit for the third quarter that surge from last year, reflecting improved operating margins and lower income tax expense amid continued strength in chicken and prepared foods. Sales also improved in four out of the company's five operational segments.

In Monday's pre-market trading, TSN is trading on the NYSE at $55.72, down $2.25 or 3.88 percent.

"We delivered strong third quarter results, fueled by continued strength in our Chicken and Prepared Foods segments, with seven consecutive quarters of growth in Chicken and continued market share gains by our iconic brands," said Donnie King, President & CEO of Tyson Foods.

For the third quarter, the Springdale, Arkansas-based company reported net Income attributable to the company of $182 million or $0.52 per share, sharply higher than $61 million or $0.17 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.99 per share, compared to $0.91 per share in the year-ago quarter.

Sales for the quarter edged down to $13.87 billion from $13.88 billion in the same quarter last year. Sales were up 0.6 percent, excluding the impact of a legal contingency accrual of $98 million recognized as reduction to sales in the current year.

Beef sales decreased to $5.39 billion from $5.60 billion, while Chicken sales improved to $4.26 billion from $4.22 billion, Pork sales increased to $1.58 billion from $1.51 billion and Prepared Foods sales grew to $2.56 billion from $2.52 billion last year.

Operating margin for the quarter improved 70 basis points to 2.6 percent and adjusted margin expanded 30 basis points to 3.9 percent from a year ago.

Looking ahead to fiscal 2025, the company narrowed its sales growth guidance to 2.5 to 3.5 percent from fiscal 2025 sales of $54.44 billion, implying sales between $55.80 billion and $56.35 billion. Previously, the company expected sales growth of 2 to 4 percent.

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