Latest Figure Make This Stock Even More prominent: Tyson Foods, Inc.’s (NYSE:TSN)

On Friday August 30, 2019, Tyson Foods, Inc.’s (NYSE:TSN) has shown upward/downward move of 1.44% and ended the last trade at $93.04. The shares recorded a trading volume 2.02 million shares as compared to its average volume of 2.77 million shares. The company has 371.70M shares outstanding and market value of 286.91M.

Tyson Foods, Inc. (TSN) stated 3rd quarter fiscal 2019 Results:

First Nine Months Highlights

GAAP EPS of $4.51, down 33% from record previous year (previous year included a one-time tax benefit of $2.71)
•         Adjusted EPS of $4.25, down 7% from record previous year
•         GAAP operating income of $2,223M; Adjusted operating income of $2,291M
•         Total Company GAAP operating margin of 7.1%; Adjusted operating margin of 7.3%
•         Record Prepared Foods GAAP operating margin of 11.8% and record Adjusted operating margin of 12.0%
•         Record Beef GAAP and Adjusted operating margins of 6.1%
•         Repurchased 3.4M shares for $225M

3rd quarter Highlights

  •    GAAP EPS of $1.84, up 25% from previous year; Adjusted EPS of $1.47, down 2% from previous year
    •         GAAP operating income of $781M; Adjusted operating income of $796M
    •         Total Company GAAP operating margin of 7.2%; Adjusted operating margin of 7.3%

Guidance

Maintaining Adjusted1EPS guidance for fiscal 2019 of $5.75-$6.10

Summary of Section Results

  • Beef– Sales volume increased for the 3rd quarter and first nine months of fiscal 2019Because of improved availability of cattle supply and stronger demand for our beef products. Average sales price increased for the 3rd quarter and first nine months of fiscal 2019 as demand for our beef products remained strong. Operating income reduced for the 3rd quarter of fiscal 2019 from record results in fiscal 2018 associated with higher fed cattle costs as well as increased operating and labor costs. Operating income increased for the first nine months of fiscal 2019 as we continued to maximize our revenues relative to live fed cattle costs, partially offset by increased operating and labor costs.
  • Pork– Sales volume increased for the 3rd quarter of fiscal 2019Because of increased domestic availability of live hogs. Average sales price reduced for the first nine months of fiscal 2019 associated with excess supply, partially offset by increased average sales price in the 3rd quarter of fiscal 2019 as live hog costs increased. Operating income reduced for the 3rd quarter and first nine months of fiscal 2019Because of periods of compressed pork margins caused by excess domestic availability of pork and increased hog costs in the 3rd quarter of fiscal 2019.
  • Chicken– Sales volume increased for the 3rd quarter and first nine months of fiscal 2019 primarily Because of incremental volume from business acquisitions. Average sales price reduced for the 3rd quarter and first nine months of fiscal 2019Because of sales mix primarily associated with the acquisition of a poultry rendering and blending business in the fourth quarter of fiscal 2018.  Operating income reduced for the first nine months of fiscal 2019Because of increased operating costs and market conditions, partially offset by increased results in the 3rd quarter of fiscal 2019 which was influenced by lower feed ingredient costs including hedging results.

Outlook
For fiscal 2020, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase about 2% from fiscal 2019 levels, but we expect export markets should absorb the increased production. The following is a summary of the outlook for each of our sections, as well as an outlook for sales, capital expenditures, net interest expense, liquidity and tax rate for the remainder of fiscal 2019 and fiscal 2020. As our accounting cycle results in a 53-week year in fiscal 2020 as contrast to a 52-week year in fiscal 2019, the fiscal 2020 outlook is based on a comparable 52-week year.

TSN the firm was able to keep Return on assets ratio of 6.90% in the trailing twelve month. The Company generated Return on equity ratio was 16.40% over the last twelve months. It has kept Return on investment ratio was 10.30%.

 

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