Tyson Foods, Inc. Class A (TSN.US) Q4 operating profit increased by 117% year-on-year. It is expected that performance will gradually improve next year.

Tyson Foods, Inc. Class A (TSN.US) performance in the fourth quarter exceeded expectations, with the company stating that the improvement in the chicken business and increased demand for prepared foods offset the decline in beef business, and they expect performance to improve next year. Data shows that the company's Q4 net sales increased by 1.6% to $13.57 billion, compared to analysts' average expectation of $13.43 billion. Adjusted earnings per share were $0.92, compared to analysts' expectations of $0.71. Adjusted operating profit skyrocketed by 117% year-on-year to $512 million, with the company's chicken business performing well, turning a loss of $267 million in the same period last year into an operating profit of $409 million. Due to the sharp drop in corn and soybean prices, reducing the cost of feeding poultry, the company's Jimmy Dean brand performance has improved this year. A series of factory shutdowns and other efficiency measures have also contributed to cost savings. As consumers look for cheaper alternatives to beef, demand for chicken has improved. Chicken is the second largest source of revenue for Tyson Foods, Inc. Class A. However, profits continue to be severely restricted by the shortage of beef cattle in the United States, not expected to improve until at least 2026. In the fourth quarter, Tyson's chicken business saw a 2.3% increase in sales, a 0.2% price increase, and a 0.7% decrease in volume. Pork business sales increased by 3.2%, while prices fell by 6.9%. Beef sales increased by 3.7%. Looking ahead, the largest meat processor in the United States expects adjusted operating profit for the 2025 fiscal year to be $1.8 to $2.2 billion. This is compared to this year's operating profit of $1.82 billion. However, revenue growth is expected to be between flat and a 1% decrease, falling short of analysts' expected growth of 1.8%. Tyson Foods, Inc. Class A President and CEO, Donnie King, stated: "We have made significant improvements in our profitability in the fourth quarter and for the full year. Looking ahead, we are optimistic about our prospects and our ability to create long-term value for shareholders." Additionally, the company announced an increase in quarterly dividends to $0.50 per share for Class A shares and $0.45 per share for Class B shares, a 2% increase from the 2024 fiscal year. According to the U.S. Department of Agriculture's forecast, Tyson Foods, Inc. Class A expects an increase in domestic protein production for the 2025 fiscal year. The company predicts that its overseas business performance will improve next fiscal year on an adjusted basis. After the financial report was released, the stock rose by approximately 6% in pre-market trading on Tuesday.