Companies and Brands

Tyson Foods Earnings Boosted by AdvancePierre Acquisition

Thinkstock

Tyson Foods Inc. (NYSE: TSN) reported third-quarter fiscal 2017 results before markets opened Monday. The food processing company posted adjusted earnings per share (EPS) of $1.28 on revenues of $9.85 billion. In the same period a year ago, the company reported EPS of $1.21 on revenues of $9.4 billion. Third-quarter results also compare to consensus estimates for EPS of $1.18 and $9.48 billion in revenues.

Year over year, adjusted operating income dipped from $767 million to $756 million and net income attributable to Tyson slipped from $484 million to $447 million. On a GAAP basis, excluding the impact of Tyson’s acquisition of AdvancePierre Food Holdings, operating income in the quarter totaled $697 million.

The company affirmed prior adjusted EPS guidance of $4.90 to $5.05 (up 13% compared with 2016 results). Tyson also expects its recently closed acquisition of AdvancePierre to create net synergies of more than $200 million by fiscal year 2020.

Tyson has repurchased some $768 million in common stock through the first nine months of its fiscal year and plans no further buybacks in the remaining quarter of the current year or in fiscal year 2018.

CEO Tom Hayes said:

We’re nearing the end of a record year of earnings per share and operating income, and we’re looking ahead to fiscal 2018 with great enthusiasm. We anticipate delivering another record year through differentiated capabilities, exceptionally strong brands and disciplined execution. …

Tyson Foods is positioned to lead consumer fresh goods through our unique capabilities. We bring together fresh food production and distribution, deep culinary expertise and consumer demand generation along with #1 brands and unmatched scale. At the same time, we operate with agility and are laser focused on creating value for our shareholders. This is an exciting time at Tyson Foods as we build a powerful engine to deliver consistent, profitable growth over time.

Shares traded up about 2.7% in Monday’s premarket session at $65.00, in a 52-week range of $55.72 to $77.05. The stock closed at $63.30 on Friday. The consensus 12-month price target was $69.33 before this morning’s report.

Is Your Money Earning the Best Possible Rate? (Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.