Tyson Foods, Inc. stock research
FY2023 Q2
Tyson Foods (TSN) Gross Margin — Quarter Ended Apr 1, 2023
Revenue was essentially flat compared to the same quarter last year, but gross profit declined substantially, resulting in a much lower gross margin. Sequentially, revenue decreased slightly while gross profit fell more sharply, further weakening the gross margin.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q2
Revenue was essentially flat compared to the same quarter last year, but gross profit declined substantially, resulting in a much lower gross margin. Sequentially, revenue decreased slightly while gross profit fell more sharply, further weakening the gross margin.
- The most observable driver of the margin change is the relationship between cost of revenue and revenue. Cost of revenue was higher relative to revenue in the current quarter compared to both the prior quarter and the year-ago quarter, directly reducing gross profit.
- Compared to the immediately preceding quarter, gross margin weakened from a higher level to a lower level. Compared to the same quarter one year earlier, gross margin was also lower, reflecting a sustained decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.0%
Gross profit
$527.0M
Revenue
$13.1B
Cost of revenue
$12.6B
Quarter-over-quarter change
n/a
Year-over-year change
-9.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 1, 2023 | $13.1B | $527.0M | $12.6B | 4.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 2, 2022
-9.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin change is the relationship between cost of revenue and revenue. Cost of revenue was higher relative to revenue in the current quarter compared to both the prior quarter and the year-ago quarter, directly reducing gross profit.
Compared to the immediately preceding quarter, gross margin weakened from a higher level to a lower level. Compared to the same quarter one year earlier, gross margin was also lower, reflecting a sustained decline.
Monitor the trend in cost of revenue as a proportion of revenue in future quarters.