Tyson Foods (NYSE: TSN) reported Q2 EPS of $0.62, $0.23 better than the analyst estimate of $0.39. Revenue for the quarter came in at $13.07 billion versus the consensus estimate of $13.14 billion.

OUTLOOK

For fiscal 2024, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2023 levels. The following is a summary of the updated outlook for each of our segments, as well as an outlook for revenues, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2024. Certain of the outlook numbers include adjusted operating income (loss) (a non-GAAP metric) for each segment. The Company is not able to reconcile its full-year fiscal 2024 projected adjusted results to its fiscal 2024 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating income (loss) should not be considered a substitute for operating income (loss) or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company’s GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.

BeefUSDA projects domestic production will decrease approximately 2% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating loss between ($400) million and ($100) million in fiscal 2024.

PorkUSDA projects domestic production will increase approximately 3% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $50 million to $150 million in fiscal 2024.

ChickenUSDA projects chicken production will increase approximately 1% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $700 million to $900 million for fiscal 2024.

Prepared FoodsWe anticipate adjusted operating income of $850 million to $950 million in fiscal 2024.

International/OtherWe anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis.

Total CompanyWe anticipate total company adjusted operating income of $1.4 billion to $1.8 billion for fiscal 2024.

RevenueWe expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023.

Capital ExpendituresWe expect capital expenditures between $1.2 billion and $1.4 billion for fiscal 2024. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. This includes completion of capacity expansion projects as well as new equipment, automation technology and processes for product innovation.

Net Interest ExpenseWe expect net interest expense to approximate $400 million for fiscal 2024.

LiquidityWe expect total liquidity, which was approximately $4.4 billion as of March 30, 2024, to remain above our minimum liquidity target of $1.0 billion. We anticipate using existing liquidity to retire the $1.25 billion senior notes due August 2024.

Tax RateWe currently expect our adjusted effective tax rate to be around 24% for fiscal 2024.

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