Tyson Foods (TSN.US) Q3 results beat expectations on rising demand for meat products
On Monday, Tyson Foods (TSN.US) reported its third-quarter earnings. The earnings report showed that Tyson Foods' Q3 sales grew 1.6% year-over-year to $13.35 billion, beating the average analyst estimate of $13.24 billion. Adjusted operating income was $491 million, up 173% from $179 million in the same period last year; adjusted earnings per share was $0.87, beating the average analyst estimate of $0.65 and up from $0.15 in the same period last year.
Tyson Foods' performance benefited from rising demand for meat products and lower animal feed costs due to falling grain prices. Tyson Foods' total sales in Q2 increased 1.1% year-over-year, and average selling price increased 0.6%. The large increase in pork prices in Q2 was offset by the decline in chicken prices and international business prices.
After a sales decline in 2023, Tyson Foods found that customers were returning to stores to buy its products as the rising cost of eating out prompted people to cook more at home. Tyson Foods CEO Donnie King said that strict measures and focus on fundamentals have led to a positive turnaround in the company's business. He emphasized, "Looking ahead, we will continue to work to be the best operator, drive efficiencies, enhance the value of our investment portfolio, win customers and consumers, and rigorously manage our capital deployment."
Tyson Foods expects its sales to be relatively flat in fiscal 2024. The company expects its capital expenditures to be between $1.2 billion and $1.3 billion in fiscal 2024. The company's capital expenditures cover investments in projects to improve profitability and maintenance and repair projects, including the completion of capacity expansion projects and new equipment, automation technologies, and product innovation processes.