What to expect when Tyson Foods (TSN) reports Q4 2023 earnings

Shares of Tyson Foods, Inc. (NYSE: TSN) were down 1% on Wednesday. The stock has dropped 25% year-to-date. The food company is scheduled to report its fourth quarter 2023 earnings results on Monday, November 13, before markets open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenues of $13.73 billion for Q4 2023, which is flat compared to the same period a year ago. In the third quarter of 2023, sales decreased 3% year-over-year to $13.1 billion.

Earnings

The consensus estimate for Q4 2023 EPS is $0.29, which compares to EPS of $1.63 reported in the prior-year quarter. In Q3 2023, adjusted EPS decreased 92% YoY to $0.15.

Points to note

Tyson saw sales and adjusted earnings decline in the third quarter. The company continues to struggle with lower pricing and high input costs. Last quarter’s sales decline was caused by a reduction in price per pound in pork and chicken while lower profitability in the beef and chicken segments impacted operating profits.

The company has been facing a challenging environment with low commodity prices in chicken, as well as supply pressures and high feed costs in pork and beef. Headwinds in the pork and beef segments are expected to continue due to tight supply and high costs.

The prepared foods segment appears to be performing relatively better. Although sales declined in the third quarter due to volume declines in the foodservice channel and lower pricing caused by lower bacon prices, the company saw continued growth in the retail channel. This segment also saw strong margin growth while margins in other segments declined. Tyson’s overall margins remain pressured and this is likely to persist in the fourth quarter as well.