Tyson Foods' Q4 Earnings Beat Expectations


Tyson Foods' Q4 Earnings Beat Expectations
Tyson Foods CEO Donnie King (Tyson Foods)

Tyson Foods Inc. of Springdale on Monday reported fourth-quarter income for fiscal 2021 of $1.36 billion.

The result was an increase from the $654 million in the same quarter a year ago. Income for the fiscal year was $3.05 billion, up from $2.06 billion in 2020.

Earnings were reported to be $2.30 per share, up from $1.70, and $8.28 for the year, up from $5.42.

The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $2.20 per share.

Revenue for the quarter was $12.8 billion, up from $11.5 billion, and it was $47 billion for the fiscal year, up from $43.2 billion. Three analysts surveyed by Zacks expected $12.56 billion in quarterly revenue.

“We delivered double digit sales and earnings growth during the fourth quarter and full year, and our performance was supported by our diverse portfolio and continued strength in consumer demand for protein,” Tyson Foods CEO Donnie King said. “We delivered a record performance in our beef segment and experienced share gains in our retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands, while supporting the continued recovery in foodservice.”

Tyson Foods said it spent $65 million on direct COVID-19 pandemic expenses in the quarter to bring the yearly total to $335 million. 

The company said it expected revenue to be between $49 and $51 billion in fiscal 2022. Tyson Foods said it was also launching a new productivity program that it expected to save between $300 million and $400 million in 2022 and as much as $1 billion by the end of fiscal 2024.

“The focus of this plan includes operational and functional excellence, digital solutions, and automation and advanced technologies,” King said.

The company’s beef segment reported quarterly revenue of $5.01 billion, up from $4.3 billion, and operating income of $1.15 billion, up from $466 billion. Sales volume dropped more than 15% in the quarterly but was more than offset by a 32.7% rise in sale price.

Fiscal revenue for beef was just a shade less than $18 billion, an increase from $15.7 billion in 2020, and annual operating income was $3.2 billion, up from $1.6 billion.

The pork segment reported quarterly revenue of $1.65 billion, up from $1.4 billion, and operating income of $78 million, down from $174 million. Fiscal revenue for the segment was $6.3 billion, up from $5.1 billion, and operating income was $328 million, down from $565 million.

As with beef, pork saw a drop in sales volume of 17.7% but a 38% increase in price in the quarter.

The chicken segment reported quarterly revenue of $3.9 billion, up from $3.4 billion, and operating income of a loss of $136 million, a drop from $86 million in the same quarter a year ago. Fiscal revenue was $13.7 billion, up from $13.2 billion, and operating income was a loss of $625 million, a decrease from $122 million.

The prepared foods segment reported quarterly revenue of $2.25 billion, down from $2.28 billion, and operating income of $823 million, an increase from $249 million. The fiscal revenue was $8.9 billion, up from $8.5 billion, and operating income was $1.5 billion, up from $743 million.

The international segment reported quarterly revenue of $546 million, up from $191 million, and operating income of a negative $3 million, an improvement from a negative $13 million in the same quarter a year ago. Fiscal revenue was $1.99 billion, up from $1.9 billion, and operating income was a loss of $3 million, a decrease from the loss of $2 million in the previous fiscal year.

“We have tremendous opportunity ahead as we work to fulfill growing global demand for safe and nutritious protein products,” King said. “We’re entering fiscal 2022 with great momentum and are committed to delivering strong returns for shareholders into the future.”


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