Tyson Foods, Inc. stock research
FY2024 Q4
Tyson Foods (TSN) Gross Margin — Quarter Ended Sep 28, 2024
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and lower than a year ago. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and lower than a year ago. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
- Gross profit grew at a faster pace than revenue relative to the prior quarter, driving the margin higher. The year-over-year improvement was supported by a lower cost of revenue base.
- Compared to the immediately preceding quarter, gross margin improved, with revenue and gross profit higher while cost of revenue remained similar. Compared to the same quarter one year earlier, gross margin also improved, driven by higher revenue and gross profit alongside a lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.8%
Gross profit
$1.1B
Revenue
$13.6B
Cost of revenue
$12.5B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+4.4 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 |
|---|---|---|---|---|
| Dec 30, 2023 | $13.3B | $823.0M | $12.5B | 6.2% |
| Mar 30, 2024 | $13.1B | $866.0M | $12.2B | 6.6% |
| Jun 29, 2024 | $13.4B | $878.0M | $12.5B | 6.6% |
| Sep 28, 2024 | $13.6B | $1.1B | $12.5B | 7.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+1.2 pts
Year-over-year change
Sep 30, 2023
+4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew at a faster pace than revenue relative to the prior quarter, driving the margin higher. The year-over-year improvement was supported by a lower cost of revenue base.
Compared to the immediately preceding quarter, gross margin improved, with revenue and gross profit higher while cost of revenue remained similar. Compared to the same quarter one year earlier, gross margin also improved, driven by higher revenue and gross profit alongside a lower cost of revenue.
Monitor whether the current cost of revenue level can be sustained while revenue continues to grow.