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.
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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