Vending

Tyson Foods lifts Q1 2023 sales, suffers earnings slide

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February 8, 2023

Tyson Foods Inc. suffered an earnings decline against a sales boost for Q1, 2023 due to market dynamics and operational inefficiencies, according to an earnings report.

Highlights include:

• Net sales rose from $12.9 billion in Q1 2022 to $13.2 billion in the quarter ending Dec. 31,2022.
• Net income fell from $1.126 billion to $320 million.
• Net income per share on a Class A basis fell from $3.16 to 91 cents and fell from $2.84 to 81 cents on a Class B basis.
• Diluted EPS fell from $3.07 to 88 cents.
• Adjusted EPS fell from $2.87 to 85 cents.
• Beef sales fell from $5.002 billion to $4.723 billion.
• Pork sales fell from $1.626 billion to $1.529 billion.
• Chicken sales rose from $3.89 billion to $4.263 billion.
• Prepared foods rose from $2.333 billion to $2.538 billion.
• International/other sales rose from $550 million to $612 million.

Shares traded today at $60.21 against a 52-week range of $59.38-$100.25.

The $13.2 billion in quarterly revenue missed analyst expectations by $250 million, while the non-GAAP EPS of 85 cents missed expectations by 52 cents, according to Seeking Alpha.

"We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health," President and CEO Donnie King said in the press release.

"We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability. We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry."