Tyson Foods Earnings: Exceeds Forecasts with Boost of Profit Rise

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S&P 500 (NYSE:SPY) component Tyson Foods Inc. (NYSE:TSN) reported net income above Wall Street’s expectations for the fourth quarter. Tyson Foods and its subsidiaries produce, distribute and market chicken, beef, pork, prepared foods and related products.

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Tyson Foods Inc. Earnings Cheat Sheet

Results: Net income for Tyson Foods Inc. rose to $185 million (51 cents per share) vs. $97 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 90.7% from the year-earlier quarter.

Revenue: Fell 0.4% to $8.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tyson Foods Inc. reported adjusted net income of 55 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. Analysts were expecting revenue of $8.49 billion.

Quoting Management: “Our earnings for the fourth quarter and fiscal year indicate that Tyson Foods is rising above the noise of commodity markets to produce solid, more consistent results,” said Donnie Smith, Tyson’s president and chief executive officer. “It has taken us several years and a lot of work to get to this point, and although there is much more to be done, I believe we have reached a new level of sustainable performance.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 12.9%.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 50 cents versus a mean estimate of net income of 55 cents per share.

Net income has dropped 13.6% year-over-year on average across the last five quarters. Performance was hurt by a 61.2% decline in the third quarter from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 34 cents a share to 30 cents over the last ninety days. The average estimate for the fiscal year has risen to $1.79 per share from $1.78 in the past month.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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