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Tyson Foods Inc. (NYSE: TSN ) was down 1% on Friday. The stock has fallen 27% over the past 12 months. The company is scheduled to report its first quarter 2023 earnings results on Monday, February 6th. Here’s what to expect from the report:
results
Analysts estimate sales of $13.5 billion for Tyson Foods in Q1 2023. This compares to sales of $12.9 billion reported in Q1 2022. In the fourth quarter of 2022, Tyson reported sales of $13.7 billion, which was up 7% year-over-year, benefiting from price increases and volume growth.
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Analysts project EPS of $1.36 for Q1 2023. This compares to adjusted EPS of $2.87 reported in the first quarter of 2022. For the fourth quarter of 2022, Tyson reported adjusted EPS of $1.63, which is down 29% YoY.
Points to note
Even in the current inflationary environment, the demand for protein remains stable and Tyson is benefiting from this trend due to its diversified product portfolio. In Q4, the company’s total volume increased by 2%. Chicken and beef volumes increased helped by higher domestic production and head production, but pork volumes fell due to limited pig supplies and lower export demand. Volume in the international segment increased the highest at 7% due to investments in capacity and brands.
Tyson expects chicken and beef volumes to remain steady in 2023 but pork volumes may be affected by the same challenges as last year. In Q4, volume in Prepared Foods gained from brand investment and market share growth. Volume is expected to grow in the coming year also helped by the brand’s investment and pickup in the food service business.
Tyson also experienced strong growth in its retail and food service channels. Core business lines increased volume share by 2.6 points in Q4 and gained share in the majority of core categories, including frozen protein breakfasts, smoked sausage and corn dogs.
The company is taking several steps to drive volume growth and margin improvement and generate cost savings. It also imposed different price levels in key categories to deal with inflationary pressures. Those efforts may pay off in the first quarter.
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