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Free Research Report as Tyson Foods’ Quarterly Revenues Increased 11.40%; Earnings Advanced 13.84%

LONDON, UK / ACCESSWIRE / March 09, 2018 / Active-Investors.com has just released a free earnings report on Tyson Foods, Inc. (NYSE: TSN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TSN. On February 08, 2018, Tyson Foods reported financial results for the first quarter of 2018 ending December 30, 2017. The Company first quarter performance marked a strong start to 2018 with record adjusted EPS and strong operating cash flows. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Tyson Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Earnings Highlights and Summary

Tyson Foods' total revenues for the first quarter of 2018 (Q1 FY18) reached $10.23 billion, an increase of 11.40% from $9.18 billion in Q1 FY17. The reported revenue number exceeded analysts' consensus estimates of $9.89 billion.

Tyson Foods' cost of sales jumped 14.02% to $8.78 billion in Q1 FY18 from $7.7 billion in Q1 FY17. The Company's gross profit for the reported quarter was $1.45 billion, which is 2.16% lower than $1.48 billion in the same period last year. Tyson Foods' operating income declined 5.60% to $927 million in Q1 FY18 from $982 million in Q1 FY17.

For the quarter ending December 30, 2017, net income attributable to Tyson Foods was $1.63 billion, which is approximately 2.75 times the income of $593 million in Q1 FY17. The Company's diluted earnings per share (DEPS) attributable to Tyson Foods was $4.40 in the quarter under review compared to $1.59 in the year ago corresponding quarter, reflecting an increase of 176.73%. The reported earnings included charges related to restructuring, and impairment charges associated with the divestiture of non-protein businesses (net of gain). It also included tax benefit from re-measurement of net deferred tax liabilities at lower
enacted tax rates due to the Federal Tax Cuts and Jobs Act. Tyson Foods' adjusted DEPS, excluding these non-recurring and non-core items, was $1.81 in Q1 FY18, up 13.84% from $1.59 in Q1 FY17. This was higher than analysts' consensus estimates of $1.51 per share.

Tyson Foods' Segment Details

During Q1 FY18, the Beef segment reported revenues were $3.89 billion, up 10.15% y-o-y, mainly due to improved availability of cattle supply, stronger demand for beef products and increased exports. This segment had an operating income of $256 million in Q1 FY18, a decrease of 14.38% from $299 million in Q1 FY17. Operating margin was 6.6% in the reported quarter compared to 8.5% in the year ago same quarter.

The Pork segment reported revenues of $1.28 billion in Q1 FY18, an increment of 2.48% from $1.25 billion in Q1 FY17. This segment's operating income in the quarter under review was $151 million, a decline of 38.87% from $247 million in the previous year's comparable quarter. The pork segment's operating margin declined 7.96% to 11.77% in Q1 FY18 from 19.73% in Q1 FY17.

For Q1 FY18, the Chicken segment generated revenues of $3 billion, an increment of 10.75% from $2.71 billion in Q1 FY17 due to strong demand for its chicken products along with the incremental volume from the AdvancePierre acquisition. This segment generated an operating income of $272 million in Q1 FY18, an increase of 3.42% from $263 million in Q1 FY17. This segment's operating margin fell 0.64% to 9.08% in the reported quarter from 9.72% in the year ago same quarter.

The Prepared Foods segment reported revenues of $2.29 billion in Q1 FY18, an increment of 20.95% from $1.9 billion in Q1 FY17, primarily from incremental volumes from the AdvancePierre acquisition. This segment's operating income advanced 37.37% to $261 million in Q1 FY18 from $190 million in Q1 FY17. The prepared food segment's operating margin improved 1.36% to 11.39% in the quarter under review from 10.03% in the previous year's corresponding quarter.

Cash Matters

Tyson Foods had cash and cash equivalents of $293 million as on December 30, 2017, a decrease of 7.86% from $318 million as on September 30, 2017. The Company had a long-term debt of $8.88 billion as on December 30, 2017, a decrease of 4.54% from $9.3 billion as on September 30, 2017.

For the quarter ending December 30, 2017, Tyson Foods' net cash flow from operating activities was $1.13 billion, a small decrease of 0.71% y-o-y. The Company paid $108 million in dividends in the quarter ending December 30, 2017, compared to $79 million in the same period last year. The Company spent $164 million in Class-A common stock repurchases in the reported quarter.


For full-year 2018, Tyson Foods expects its sales to increase by 6%-7% to $41 billion, due to incremental AdvancePierre sales of $1.1 billion, an increase in sales volume in its legacy businesses and an improvement in mix mainly in the Chicken segment. The Company estimates an adjusted EPS of $6.55-$6.70 for fiscal 2018, including the benefit of lower enacted tax rates but excluding the one-time cash bonuses. This signifies an increase of 23%-26% from fiscal 2017 adjusted EPS.

Stock Performance Snapshot

March 08, 2018 - At Thursday's closing bell, Tyson Foods' stock was marginally up 0.59%, ending the trading session at $74.97.

Volume traded for the day: 1.55 million shares.

Stock performance in the last month – up 1.05%; previous six-month period – up 15.43%; and past twelve-month period – up 21.08%

After yesterday's close, Tyson Foods' market cap was at $27.46 billion.

Price to Earnings (P/E) ratio was at 15.17.

The stock has a dividend yield of 1.60%.

The stock is part of the Consumer Goods sector, categorized under the Meat Products industry. This sector was up 0.9% at the end of the session.


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