Companies and Brands
How a New CEO Perked Up Tyson Foods Q3 Results
Published:
Last Updated:
Tyson Foods Inc. (NYSE: TSN) reported third-quarter fiscal 2020 results before markets opened Monday. The meat processing company posted adjusted earnings per share (EPS) of $1.40 on revenues of $10.0 billion. In the same period a year ago, the company reported EPS of $1.47 on revenues of $10.9 billion. Third-quarter results also compare to consensus estimates for EPS of $0.94 and $10.6 billion in revenues.
EPS on a GAAP basis totaled $1.44, including a one-time benefit of $0.03 per share related to insurance proceeds from a 2019 fire at its beef slaughterhouse in Holcomb, Kansas, and a $0.01 per share benefit from a gain in pension plan terminations.
The company also announced this morning that CEO Noel White will step down in favor of company president Dean Banks, who will assume the chief executive role on October 3. White, who has been with Tyson for 37 years, will become executive vice-chair of the company’s board. Before joining Tyson in 2017 as a director and being named company president last year, Banks was a project lead at Alphabet Inc. (NASDAQ: GOOGL) moonshot Google [x] (now X Development).
Tyson attributed third-quarter direct expenses of $340 million due to COVID-19, including costs for “worker health and availability” and production facility downtime. The company also paid $114 million in “thank you” bonuses to workers, a cost partially offset by CARES Act credits.
In its outlook statement, Tyson said operating costs are expected to increase in the remainder of the 2020 fiscal year and into fiscal 2021. Production volumes are expected to decline throughout the period, as well as a result of “capacity utilization slowdowns.”
Tyson did not provide financial guidance, but analysts expect fourth-quarter EPS of $1.14 on sales of $11.5 billion. For the full 2020 fiscal year, analysts are looking for EPS of $4.57 and revenue of $43.64 billion.
Shares traded down about 2.4% early Monday, at $62.90 in a 52-week range of $42.57 to $94.24. The 12-month consensus price target on the stock is $72.49 and the dividend yield is 2.73%.
24/7 Wall St.Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.