What to expect when Tyson Foods (TSN) reports its Q4 2024 earnings results

Shares of Tyson Foods, Inc. (NYSE: TSN) stayed green on Tuesday. The stock has gained 9% year-to-date. The food company is scheduled to report its fourth quarter 2024 earnings results on Tuesday, November 12, before market open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $13.43 billion for Tyson in Q4 2024. This compares to sales of 13.35 billion reported in the same period a year ago. In Q3 2024, sales rose 1% year-over-year to $13.35 billion.

Earnings

The consensus estimate for Q4 2024 earnings per share is $0.69, which compares to adjusted EPS of $0.37 reported in Q4 2023. In Q3 2024, adjusted EPS amounted to $0.87.

Points to note

Tyson is expected to benefit from the strength of its brands and from strong demand for protein. As per data from Nielsen, last quarter, the company saw consumption growth across beef, chicken and pork rise by 1.3%. Its brands Tyson, Jimmy Dean, and Hillshire Farm hold a leading position in the protein category with potential for further expansion of household penetration.

Tyson’s efforts in product innovation as well as its steps in supply chain improvement, marketing, and distribution expansion are also expected to benefit its business. It is also working on improving utilization in its chicken plants by optimizing its network.

Last quarter, sales in the Chicken segment decreased in the low-single digits, mainly due to the pass-through of lower input costs and pricing. Sales in Beef saw mid-single-digit growth, helped by pricing, while Pork recorded double-digit sales growth, driven by healthy global demand.

Tyson has been focusing on broadening its customer base, growing in margin accretive channels, and expanding its presence in broad line distribution categories in Foodservice. This helped drive sales and volume growth in Prepared Foods.

Adjusted operating margin in Q3 increased to 3.7% from 1.4% in the year-ago quarter, helped by significant margin improvements in Chicken, Prepared Foods, and Pork.