Tyson Foods (TSN) is rising this morning on strong earnings for both Q4 2024 and the Fiscal year. The meat producer reported growth in several key metrics, including sales, GAAP operating income, and earnings-per-share, demonstrating that the company is making significant progress toward profitability. While CEO Donnie King noted that the current cattle cycle poses challenges, these results show that Tyson is handling it well.
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What’s Happening With Tyson Foods Stock Today?
This earnings report sparked momentum for Tyson Foods stock yesterday. Shares closed out trading up 6.5% for the day. Although they have dipped in premarket trading today, this will likely stabilize soon as the market adjusts to Tyson’s positive outlook. This comes at a good time, as TSN stock still has some ground to make up after spending most of September 2024 trending downward.
Tyson reports that during the Fiscal year, sales reached $53,309 million, an increase of 0.8% from prior year. Quarterly sales rose 1.6%, coming in at $13,565 million. Adjusted earnings-per-share surged 131% for the year and 149% for the quarter, coming in at $3.10 and $0.92 respectively. Cash provided by operating activities reached $2,590 million, almost doubling from the 2023 Fiscal year. And Tyson’s Q4 GAAP operating income reached $525 million, an increase of $988 million from Q4 2023.
King is optimistic about Tyson’s future growth prospects. On the Q4 earnings call, he stated that the company has strengthened its financial position through “solid cash flow generation” and substantially reducing its net leverage ratio.
Wall Street Remains Sidelined On Tyson Foods Stock
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSN stock based on two Buys, and four Holds assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average TSN price target of $65.60 per share implies 5% upside potential.
See more TSN stock analyst ratings
Since the recent earnings report, multiple analysts have reiterated their positions with a more bearish rating and lowered their TSN stock price targets, predicting downside potential.
