Tyson Foods beats quarterly income estimates, year-to-date sales up 4.8%


A Tyson Foods, Inc., sign marks the entrance to the company’s headquarters in Springdale, Ark., in this Monday, July 30, 2001 photo. Tyson reported that feed costs will take a bite out of fourth-quarter earnings and reported third-quarter profits that were off by half from the same period in 2000. (AP Photo/April L. Brown)

SPRINGDALE, Ark. (TALK BUSINESS) — Tyson Foods outperformed Wall Street expectations for its fiscal third quarter with net income of $676 million, or $1.84 per share, up from $541 million, or $1.47 per share, in the year-ago period. On an adjusted basis, the company’s net income per share was $1.47, still better than analysts’ consensus of $1.41 per share.

Revenue came in at $10.9 billion, up 8.3% year-over-year, but slightly below what analysts expected at $11.05 billion. Despite the revenue miss, Wall Street cheered the overall results and the prospects for the rest of the year, sending Tyson Foods shares to a new 52-week high of $87.29 in the morning session.

Shares of Springdale-based Tyson Foods (NYSE: TSN) rose more than 8.5%, trading well above $86 per share with heavy volume in the morning session. For the previous 52 weeks, the share price has ranged from $49.77 to $87.29, which was reached Monday morning following the earnings announcement.

Stephens Inc. analyst Ben Bienvenue expected Tyson Foods stock “to outperform today following the solid beat on the quarter and reiteration of guidance in the face of investors bracing for a reduction in guidance.” Tyson Foods beat his adjusted earnings estimate of $1.42 per share, primarily because of better-than-expected gross margins, higher sales and lower taxes.

“Additionally, initial commentary on fiscal 2020 was positive. We continue to think Tyson Foods is well-positioned as we head into 2020 and we have an overweight rating, while our estimates and price target are under review.”

Ben Bienvenue, Stephens Inc. analyst

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