Tyson Foods, Inc. stock research
FY2023 Q4
Tyson Foods (TSN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased slightly from the prior quarter but was lower than the same quarter last year. Gross profit and gross margin both declined compared to the prior quarter and the year-ago period, as cost of revenue rose relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Revenue increased slightly from the prior quarter but was lower than the same quarter last year. Gross profit and gross margin both declined compared to the prior quarter and the year-ago period, as cost of revenue rose relative to revenue.
- The most observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue grew faster than revenue from the prior quarter, and compared to the year-ago quarter, revenue was lower while cost of revenue was higher, directly compressing gross profit.
- Gross margin weakened compared to the immediately preceding quarter and weakened substantially compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.4%
Gross profit
$459.0M
Revenue
$13.3B
Cost of revenue
$12.9B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-6.1 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% |
| Jul 1, 2023 | $13.1B | $677.0M | $12.5B | 5.2% |
| Sep 30, 2023 | $13.3B | $459.0M | $12.9B | 3.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
-1.7 pts
Year-over-year change
Oct 1, 2022
-6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue grew faster than revenue from the prior quarter, and compared to the year-ago quarter, revenue was lower while cost of revenue was higher, directly compressing gross profit.
Gross margin weakened compared to the immediately preceding quarter and weakened substantially compared to the same quarter one year earlier.
Monitor the trajectory of gross profit relative to cost of revenue in upcoming quarters.