Tyson Takes a Big Bite Out of Earnings

By Chris Lange Updated Jan 12, 6:22AM EST · Published Nov 13, 11:50AM EST

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Tyson Takes a Big Bite Out of Earnings — © Thinkstock

Shares of Tyson Foods Inc. (NYSE: TSN) saw a handy gain to kick off the week after the company announced its fiscal fourth-quarter financial results, as well as the completion of an acquisition. Overall these results capped off a strong year for the company with its shares outpacing the U.S. broad markets.

Excluding Monday’s move, the stock was up about 20% year to date. Over the past six months the stock was up closer to 28%.

According to the company, it had $1.43 in earnings per share (EPS) and $10.15 billion in revenue. That compares with consensus estimates from Thomson Reuters of $1.38 in EPS on revenue of $9.89 billion. In the same period of last year, Tyson Foods posted EPS of $0.96 and $9.16 billion in revenue.

Looking ahead to the fiscal 2018 full year, Tyson Foods expects to see EPS in the range of $5.70 to $5.85. This compares to consensus estimates that are calling for $5.81 in EPS on $40.36 billion in revenue.

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Tom Hayes, president and CEO, commented on the report:

The fourth quarter was a strong finish to another record year. We delivered well over our goals of at least 4 percent operating income growth, EPS growth in the high single digits and 3 percent volume growth in value-added products, and expect to meet or exceed these goals again in fiscal 2018.

Separately, Tyson Foods announced that it has completed the acquisition of Philadelphia-based Original Philly Holdings, one of the nation’s leading producers of raw and fully-cooked Philly-style sandwich steak and cheesesteak appetizer products.

Original Philly Holdings makes sense as a natural, strategic fit with Tyson’s Prepared Foods business. Not to mention the Original Philly brand and portfolio of products are highly regarded in the foodservice industry and have a growing list of customer relationships with chain and convenience store operators.

John Karamatsoukas, president and CEO of Original Philly, commented:

We’re excited to be part of the Tyson Foods family, which will allow us to build on the legacy of our business. Tyson Foods is a leader in the food industry and has a strong reputation for successfully acquiring and growing family-owned businesses like ours. With deep appreciation for our customers, employees, and vendors’ contributions to Original Philly’s success, I remain confident that Tyson Foods will honor and operate the business in a manner consistent with the values we embrace.

Shares of Tyson were last seen up over 1% at $75.14, with a consensus analyst price target of $77.27 and a 52-week range of $55.72 to $75.55.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.