Tyson Foods Expects Flat 2024 Sales as Beef Remains a Drag
- US beef processors struggle with shrinking herds, higher costs
- Adjusted earnings of 37 cents per share down 77% from year ago
There’s less cattle available in the US for companies process into beef as the nation’s herd has shrunk to the smallest in almost a decade.
Photographer: Daniel Acker/BloombergTyson Foods Inc. signaled 2024 results that trailed analysts’ estimates and wrote down the value of its investments in beef amid a challenging economic backdrop, tighter cattle supplies and higher costs.
Sales of the largest US meat producer should remain relatively flat in the fiscal year that started in October, while operating income is expected to fall short of the $1.6 billion average of analyst estimates compiled by Bloomberg, the company said in a statement. The meatpacker reported quarterly adjusted earnings of 37 cents per share, down 77% from a year earlier, as it recorded a goodwill impairment charge of $333 million in its beef segment. The profit was still above the 25-cent average of analyst estimates compiled by Bloomberg.