Tyson Foods stock falls as revenue misses estimates

Investing.com -- Tyson Foods, Inc. reported mixed second-quarter results on Monday, with earnings beating expectations but revenue falling short of analyst estimates. The stock dropped 3.9% following the release.

The food processing giant posted adjusted earnings per share of $0.92, surpassing the consensus estimate of $0.84. However, revenue came in at $13.07 billion, below the $13.16 billion analysts were expecting.

Sales were flat YoY, impacted by $343 million in legal contingency accruals that reduced revenue by 2.6%. Adjusted operating income rose 27% to $515 million, while adjusted operating margin expanded to 3.8% from 3.1% a year ago.

"We delivered another solid quarter with growth in both sales and adjusted operating income, driven by strong execution across the business," said Donnie King, President&CEO of Tyson Foods (NYSE:TSN).

For fiscal 2025, Tyson expects total company adjusted operating income of $1.9 billion to $2.3 billion. The company anticipates sales to be flat to up 1% compared to fiscal 2024.

However, in its Beef segment, the company noted that the USDA projects domestic production will be relatively flat in fiscal 2025 compared to fiscal 2024. As a result, TSN anticipates the segment will post an adjusted operating loss between $0.4 billion and $0.2 billion in fiscal 2025.