Tyson Foods, Inc. stock research
FY2024 Q2
Tyson Foods (TSN) Gross Margin — Quarter Ended Mar 30, 2024
Revenue was slightly lower than the prior quarter, but gross profit was higher because cost of revenue decreased. Compared to the same quarter last year, revenue was stable while gross profit rose significantly, leading to a much improved gross margin.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q2
Revenue was slightly lower than the prior quarter, but gross profit was higher because cost of revenue decreased. Compared to the same quarter last year, revenue was stable while gross profit rose significantly, leading to a much improved gross margin.
- The decrease in cost of revenue, combined with relatively stable revenue, drove the improvement in gross margin.
- Compared to the immediately preceding quarter, gross margin improved as revenue decreased slightly while cost of revenue decreased more. Compared to the same quarter one year earlier, gross margin improved substantially as revenue was stable while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.6%
Gross profit
$866.0M
Revenue
$13.1B
Cost of revenue
$12.2B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.6 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 |
|---|---|---|---|---|
| Jul 1, 2023 | $13.1B | $677.0M | $12.5B | 5.2% |
| Sep 30, 2023 | $13.3B | $459.0M | $12.9B | 3.4% |
| Dec 30, 2023 | $13.3B | $823.0M | $12.5B | 6.2% |
| Mar 30, 2024 | $13.1B | $866.0M | $12.2B | 6.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+0.4 pts
Year-over-year change
Apr 1, 2023
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue, combined with relatively stable revenue, drove the improvement in gross margin.
Compared to the immediately preceding quarter, gross margin improved as revenue decreased slightly while cost of revenue decreased more. Compared to the same quarter one year earlier, gross margin improved substantially as revenue was stable while cost of revenue was lower.
Monitor whether the lower cost of revenue level can be sustained in future quarters.