Tyson Foods’ Q4 Sales Miss, Adjusted Profit Beats as Margins Tighten

Wider losses in beef and pork, along with a sizable legal accrual, weighed on profitability despite improved results in chicken.

Overview

Quarterly revenue rose 2.2% year over year to $13.86 billion, coming in below analyst estimates.
Adjusted earnings were $1.15 per share, topping forecasts, while GAAP net income fell to $47 million (13 cents) from $357 million a year earlier.
Companywide operating margin slid to 1.1% from 3.9% in the prior-year quarter.
Beef posted a $319 million operating loss and pork a $99 million loss as volumes declined even with higher average prices, while chicken operating income increased to $447 million on higher sales and volumes.
A $355 million increase in legal contingency accruals affected comparability; GAAP operating income was $158 million versus adjusted operating income of $608 million, and free cash flow margin improved to 8.5% from 2.7%.