While shipments of pork and beef stagnated in fiscal 2015, according to the results, the combined company made up for losses by increasing sales of prepared foods by 70 percent over the previous year. “We plan to continue repurchasing our shares; in fact, we’ve already bought back $200m of our stock so far in the first quarter of fiscal 2016”.
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Separately, TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of A+.
Tyson Foods Inc., the largest USA chicken processor, missed analysts’ profit estimates as prices for breast and leg meat fell amid abundant supply.
The Springdale, Arkansas-based company reported quarterly net income of $258 million, or $0.63 per share, compared to $137 million, or $0.35 per share, in the year-ago quarter.
For the full-year, Tyson Foods registered $3.15 in EPS on $41.37 billion revenue while the analysts were expecting EPS of $3.20 with $41.10 billion in revenue. Excluding items, the company’s adjusted earnings came in at $0.83 per share. The company is raising its Hillshire Brands synergy estimates for fiscal 2016 to more than $500 million, and above $700 million for fiscal 2017.
Adjusted net sales increased 0.2% to $9.756 billion due to strong demand for chicken products and as the Hillshire Brands acquisition boosted sales of prepared foods. Sales volume increased 1.3%, while average sales price (ASP) declined 1.5%. The company’s strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, attractive valuation levels, good cash flow from operations and solid stock price performance.
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The Street had expected $10.23 billion in revenue. After the session commenced at $44.44, the stock reached the higher end at $44.76 while it hit a low of $43.43. It operates in four segments: Chicken, Beef, Pork and Prepared Foods. The Company operates an integrated poultry production process.
