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Tyson Foods’ Fiscal 2Q Earnings Beat Expectations

2 min read

Tyson Foods Inc. of Springdale on Monday reported second-quarter income of $426 million, up 35 percent from the same quarter last year.

The publicly traded meat processor (NYSE: TSN) reported revenue of $10.4 billion for the quarter, up from $9.8 billion in the same quarter a year ago. Earnings per share was $1.17 for the quarter, up from 85 cents a year ago.

The company beat analysts’ expectations for earnings per share and revenue.

In a news release, CEO Noel White said the company was maintaining its earnings per share guidance of $5.75 to $6.10 for fiscal 2019.

“I’m pleased with our direction as we begin the back half of the year,” White said. “The prepared foods segment produced its second consecutive quarter of record return on sales. Both the beef and pork segments were solid performers, while the chicken segment is poised for improvement following what we believe are its margin lows for the year.”

Tyson’s beef segment reported sales of $3.9 billion, up from $3.7 billion in the same quarter a year ago. Chicken sales were $3.4 billion, up from $3 billion a  year ago, while pork sales were $1.2 billion, down from $1.3 billion.

The prepared foods segment had sales of $2 billion, down from $2.1 billion. Its operating income for the quarter was $245 million, up from $119 million a year ago.

Tyson said its beef segment benefited from higher demand and better cattle supply. Pork also benefited from a better supply.

Chicken saw a sales increase but operating income decreased because of higher costs of feed and operations. Tyson acquired American Proteins of Cumming, Georgia, a poultry rendering company, for $864 million in August, which helped chicken sales.

Prepared foods saw a sales decrease, which Tyson said was because the company sold several subsidiaries, but operating income increased because of high demand and lower material costs.

Shares of the company were trading up by more than 2 percent on Monday to $76.72.

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