TS

Tyson Foods, Inc. stock research

Jun 29, 2024

FY2024 Q3

Tyson Foods (TSN) Gross Margin — Quarter Ended Jun 29, 2024

Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Cost of revenue rose less rapidly than revenue, yielding a gross profit improvement and stable gross margin versus the prior quarter, while gross margin strengthened compared with the year-ago period.

Gross margin takeaway

Quarter ended Jun 29, 2024 · FY2024 Q3

Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Cost of revenue rose less rapidly than revenue, yielding a gross profit improvement and stable gross margin versus the prior quarter, while gross margin strengthened compared with the year-ago period.

  • Revenue growth outpaced the increase in cost of revenue, which expanded only modestly. This relationship allowed gross profit to rise and gross margin to improve relative to a year ago.
  • Compared with the preceding quarter, revenue and cost of revenue both rose, and gross profit moved higher while gross margin remained unchanged. Versus the same quarter one year earlier, revenue and cost of revenue were higher, but the gap between them widened, resulting in stronger gross profit and an improved gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

6.6%

Gross profit

$878.0M

Revenue

$13.4B

Cost of revenue

$12.5B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+1.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$13.3B$459.0M$12.9B3.4%
Dec 30, 2023$13.3B$823.0M$12.5B6.2%
Mar 30, 2024$13.1B$866.0M$12.2B6.6%
Jun 29, 2024$13.4B$878.0M$12.5B6.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 30, 2024

-0.0 pts

Year-over-year change

Jul 1, 2023

+1.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Revenue growth outpaced the increase in cost of revenue, which expanded only modestly. This relationship allowed gross profit to rise and gross margin to improve relative to a year ago.

Compared with the preceding quarter, revenue and cost of revenue both rose, and gross profit moved higher while gross margin remained unchanged. Versus the same quarter one year earlier, revenue and cost of revenue were higher, but the gap between them widened, resulting in stronger gross profit and an improved gross margin.

Monitor the trend in cost of revenue relative to revenue; a slower growth in cost compared with revenue supported margin improvement this period.

TSN Gross Margin — Quarter Ended Jun 29, 2024