Tyson Foods Q4 Adj. EPS Tops View; Guides FY21 Sales Below View
(RTTNews) – Meat processor Tyson Foods Inc. (TSN) reported Monday a profit for the fourth quarter that increased from last year, reflecting sales growth at most of its operating segments. Adjusted earnings per share topped analysts’ expectations. The company also initiated sales guidance for the full-year 2021 and boosted quarterly dividend 6 percent.
In Monday’s pre-market trade, TSN is trading at $64.75, up $2.44 or 3.92 percent.
The Springdale, Arkansas-based company reported net Income attributable to the company for the quarter of $692 million or $1.90 per share, up from $369 million or $1.01 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $1.81 per share, compared to $1.21 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $1.19 per share for the quarter. Analysts’ estimates typically exclude special items.
Sales for the quarter grew 5.4 percent to $11.46 billion from $10.88 billion in the same quarter last year. Analysts expected revenue of $11.01 billion for the quarter. Adjusted for an additional week, sales were $10.64 billion.
Beef sales volume increased 11.8 percent, or increased 3.8 percent after removing the impact of an additional week, primarily due to a fire that caused the temporary closure of a production facility last year.
Pork sales volume increased 15.2 percent, or increased 6.9 percent after removing the impact of an additional week, due to strong demand for pork products and increased domestic availability of live hogs.
Chicken sales volume increased 1.9 percent, or decreased 5.4 percent after removing the impact of an additional week, primarily due to lower production amid COVID-19 and lower foodservice demand, partially offset by increased retail demand.
Prepared Foods sales volume increased 1.6 percent, or decreased 5.6 percent after removing the impact of an additional week, as growth in volume across the retail channel was offset by a reduction in the foodservice channel related to reduced demand and lower production amid COVID-19.
The company also said its Board of Directors declared a 6 percent higher quarterly dividend of $0.445 per share on its Class A common stock and $0.4005 per share on its Class B common stock. These dividends are payable on December 15, 2020, to shareholders of record at the close of business on December 1, 2020 as well as payable on March 15, 2021, to shareholders of record at the close of business on March 1, 2021.
Looking ahead to fiscal 2021, the company projects sales to be between $42 billion and $44 billion. The Street is looking for sales of $44.23 billion for the year.
The USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 1 percent from fiscal 2020 levels, with beef production increasing approximately 2 percent, while pork and chicken production remaining relatively flat.
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