Tyson Foods, Inc. (NYSE: TSN)
Tyson Foods reported better-than-expected financial results for its 2018 third-quarter before the bell Monday, sending its shares up 3% to trade at $59.
The food company posted an increase in earnings of 21% from the year ago period. Revenue also jumped by 2% but fell short of analyst estimates.
The company attributed the solid performance to the strong demand for its beef products. Last week, Tyson reduced its full-year profit guidance due to high tariffs and uncertainty in trade policies that have upset both export and domestic meat prices.
TSN Earnings & Outlook
Tyson reported adjusted earnings per share of $1.50 surpassing the consensus estimate of $1.46. In the year ago quarter, the company had earnings of $1.28 per share.
For the full year, it expects to post adjusted earnings of between $5.70 and $6.00 per share, from the previous projection of between $6.55 and $6.70 per share.
During the third quarter, revenue went up by 2% to $10.05 billion from $9.85 billion in the same period last year. However, the company failed to beat Wall Street revenue estimates of $10.27 billion.
Tyson expects sales to rise by about 6 % to between $40 billion and $41 billion for the full year. Analysts, see 2018 revenue and earnings per share guidance of $40.59 billion and $6.06 respectively, according to figures compiled by Thompson Reuters.
Tyson Foods CEO Comments
“We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing. In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income and margins,” said Tom Hayes, Tyson Foods President and Chief Executive Officer.
“Our diverse portfolio continues to be a key advantage for us. Our Beef and Prepared Foods segments had a strong quarter, helping to balance the results in our Chicken and Pork segments, which faced stiff headwinds.
“We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value,” concluded Hayes.
Tyson Foods, Inc. Company Profile
Tyson Foods is a food company based in Springdale, Arkansas. It is engaged in the production of processed foods. The company operates through the following segments; Pork, Chicken, Prepared Foods and Beef.
The Pork segment processes live market hogs and fabricates pork carcasses into sub-primal and primal cuts as well as case-ready products. The Chicken segment deals with operations of the company related to breeding and processing of live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products.
Its Prepared Foods segment engages in the manufacture and marketing of refrigerated and frozen food products and logistic operations. The Beef segment is involved in the processing of live feed cattle and fabricating dressed beef carcasses into sub-primal and primal meat cuts as well as case-ready products.
Tyson Foods was founded by John W. Tyson in 1935. The company competes with Hormel Foods Corporation. –Reuters