Tyson Foods Inc TSN shares are trading higher after the company reported first quarter FY24 results.
Sales rose 0.4% y/y to $13.32 billion, above analysts’ consensus of $13.27 billion.
Beef sales volume decreased 4.1% year over year, pork increased 7.7%, chicken decreased 1.5% and prepared foods grew 2.5 %.
Gross profit fell to $823 million from $968 million a year ago, with the margin contracting to 6.2% from 7.3% a year earlier.
Adjusted operating profit fell 9% y/y to $411 million, a margin of 3.1% versus 3.4% a year ago.
Adjusted EPS of $0.69 beat the analyst consensus of $0.41.
The company had $1.48 billion in cash and cash equivalents as of December 30, 2023.
Perspectives reaffirmed: Tyson Foods expects fiscal year 24 sales to be relatively stable y/y, adjusted operating profit of $1.0 billion to $1.5 billion, and capital expenditures of $1.0 billion to $1.5 billion of dollars.
For FY24, the U.S. Department of Agriculture (USDA) expects domestic protein production (beef, pork, chicken and turkey) to increase slightly y/y, with beef production decreasing by about 2% y/y, that of pork will increase by about 2% and the chicken will be flat y/y.
Price action: TSN shares were up 7.2% at $60.43 at last check on Monday.