NEW YORK, August 10, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Tyson
Foods, Inc. (NYSE: TSN). Select highlights from the internally
released reports are being made available to the general public
(included below), with access to the entirety of the research
available to new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=TSN
Highlights from our TSN Report include:
- Tyson Misses Earnings and Sales
Expectations - On August 3, 2015,
Tyson Foods, Inc. reported Q3 2015 total sales of $10.1 billion, up by 4% Y-o-Y. The Company
reported an operating income of $563
million as compared to $351
million in Q3 2014. Net income attributable to Tyson rose
31.92% to $343 million or 0.83 per
diluted share, compared to $260
million or 0.73 per diluted share in Q3 2014. The Company
earned adjusted EPS of $0.80, up 7%
from $0.75 in prior year. However,
the same was below analysts average estimate of $0.92 per share, according to Thomson Reuters
I/B/E/S. Additionally, analysts had forecast sales of $10.3 billion for the quarter.
- Segment Sales Performance - Tyson Foods'
sales volumes in Chicken segment grew 2.9% as a result of stronger
demand for chicken products and mix of rendered product sales.
Sales volume in Beef segment decreased by 3.9% due to a reduction
in live cattle processed while the average sales price increased
6.9% due to lower domestic availability of beef products. Pork
segment's sales volume decreased 4.8% due to the divestiture of
Heinold Hog Markets business in the Q1 2015. Sales volume in
Prepared Foods segment increased 77.4% due to incremental volumes
from the acquisition of Hillshire Brands. The Company's
International sales volume saw a decline of 25.3% as it closed the
sale of its Brazilian operation during the Q1 2015 and due to weak
demand in China, partially offset
by stronger demand in Mexico.
- CEO's note - Donnie Smith, President and CEO of Tyson Foods
stated, "Our beef business suffered from export market disruptions
that had an $84 million impact on
third quarter results, and we continue to see very high cattle
costs at a time when product values and export issues are making it
difficult to realize expected revenue levels in this spread
business." The beef segment posted an operating loss of
$7 million, a wide swing from the
$101 million operating income posted
in the same quarter of 2014.
- Guidance update - The Company's outlook includes sales
of c. $41 billion for fiscal 2015 and
fiscal 2016, each. The Company expects its capital expenditures to
approximate $900 million for fiscal
2015 and range between $900 - $950
million for fiscal 2016. Tyson also expects fiscal 2015
adjusted earnings in the range of $3.10 to
$3.20 per share, below its previous forecast for earnings of
$3.30 to $3.40. However, the same was
below Wall Street forecasts for earnings of $3.44 a share, as per FT.com.
To find out how this influences our rating on Tyson Foods, Inc.,
read the full report in its entirety here:
http://www.aciassociation.com/?c=TSN
--
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