Workers at Tyson Foods' (TSN, Financial) Amarillo plant, the largest beef processor in the U.S., have overwhelmingly voted to initiate a strike. Represented by Teamsters Local 577, 3,100 employees involved in slaughtering and processing are calling for increased wages and enhanced benefits. The union highlighted the significant pay gap between Tyson's CEO and the average worker, citing that last year, the CEO’s earnings were 525 times that of the median employee. The potential strike underscores the importance of this facility within the beef supply chain. The union has also lodged several unfair labor practice charges against Tyson, alleging violations of labor laws.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Tyson Foods Inc (TSN, Financial) is $65.94 with a high estimate of $80.31 and a low estimate of $58.00. The average target implies an upside of 19.00% from the current price of $55.41. More detailed estimate data can be found on the Tyson Foods Inc (TSN) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Tyson Foods Inc's (TSN, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tyson Foods Inc (TSN, Financial) in one year is $61.11, suggesting a upside of 10.29% from the current price of $55.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tyson Foods Inc (TSN) Summary page.
TSN Key Business Developments
Release Date: May 05, 2025
- Revenue: $13.1 billion, including a $343 million reduction related to a legal contingency accrual.
- Adjusted Operating Income: Increased by 27% to $515 million.
- Adjusted Earnings Per Share: Grew more than 48%.
- Prepared Foods Margin: Expanded by 50 basis points year-over-year.
- Chicken Segment: Adjusted operating income nearly doubled, marking the best second quarter performance since fiscal 2016.
- Pork Segment: Adjusted operating income increased 67%, the strongest second quarter result in three years.
- Free Cash Flow: $382 million year-to-date.
- Net Leverage Ratio: 2.3 times.
- Liquidity: $3.2 billion after paying off a $750 million term loan.
- Capital Expenditures: $464 million year-to-date.
- Dividends: $349 million year-to-date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tyson Foods Inc (TSN, Financial) reported its fourth consecutive quarter of year-over-year growth in sales, adjusted operating income, and adjusted earnings per share.
- The company achieved a 48% growth in adjusted earnings per share, driven by improved operating performance and strategic execution.
- Prepared foods segment delivered double-digit margins, expanding by 50 basis points versus the prior year, with a focus on operational excellence and innovation.
- The chicken segment reported its best second-quarter adjusted operating income in nine years, with strong operational execution and lower grain costs.
- Tyson Foods Inc (TSN) is optimizing its logistics and distribution infrastructure, expected to generate around $200 million in annual savings by 2030.
Negative Points
- The beef segment is facing challenging market conditions with limited cattle availability, pressuring spreads and impacting profitability.
- Second-quarter enterprise sales were impacted by a $343 million reduction related to a legal contingency accrual, primarily affecting the pork segment.
- Despite strong quarterly results, Tyson Foods Inc (TSN) did not raise its full-year guidance, citing uncertainties such as tariffs and consumer pressure.
- The company anticipates continued investments in the chicken segment, which may impact operating income in the second half of the year.
- The macroeconomic environment remains dynamic, with potential impacts from tariffs and consumer behavior affecting future performance.
