Tyson Foods beats by $0.03, misses on revs; guides FY15 revs below consensus
Reports Q2 (Mar) earnings of $0.75 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.72; revenues rose 10.5% year/year to $9.98 bln vs the $10.09 bln consensus. "Our fiscal second quarter is seasonally challenging, but we came in above our projections due to strong performances by our Prepared Foods and Chicken segments."
- Co issues guidance for FY15, sees FY15 revs of approx $41 bln vs. $42.18 bln Capital IQ Consensus Estimate.
- "In fiscal 2015, we expect domestic protein production (chicken, beef, pork and turkey) to increase approximately 2% from fiscal 2014 levels. Grain supplies are expected to increase in fiscal 2015, which should result in lower input costs as well as decreased costs for cattle and hog producers. The following is a summary outlook for each of our segments, as well as an outlook on sales, capital expenditures, net interest expense, liquidity and share repurchases. Our accounting cycle results in a 53-week year in fiscal 2015 as compared to a 52-week year in fiscal 2014. Accordingly, the outlook is based on a 52-week year."
--> Conf call : Tyson Foods reaffirmed FY15 EPS $3.30-3.40 vs $3.38 Capital IQ Consensus
Tyson Foods (TSN 40.50) is trading lower this morning after reporting first quarter results and issuing guidance for the full year.
The company reported second quarter adjusted earnings of $0.75 per share, beating expectations (year/year adjusted earnings rose 25%). On the top line, revenues rose 10.5% year/year to $9.98 billion, which fell just a little short of expectations.
Overall, the company came in above expectations on strong performances in its Prepared Foods and Chicken segments.
During the quarter, chicken, pork and prepared foods margins all improved year/year. Chicken prices were flat year/year, however, feed ingredient costs came in lower, helping boost operating income.
Meanwhile, margins for beef and international weakened. Sales volume fell in both segment. Average sales prices fell in the brief segment, while average sales prices rose in its international segment.
Overall, beef and chicken made up about 68% of total company sales (beef 40%, chicken 28%). Prepared foods made up 18% and pork made up 12%. The company said, "Our fiscal second quarter is seasonally challenging, but we came in above our projections due to strong performances by our Prepared Foods and Chicken segments."
Looking ahead, Tyson expects to see revenue in fiscal year 2015 of approximately $41 billion, which falls short of expectations.
"In fiscal 2015, we expect domestic protein production (chicken, beef, pork and turkey) to increase approximately 2% from fiscal 2014 levels. Grain supplies are expected to increase in fiscal 2015, which should result in lower input costs as well as decreased costs for cattle and hog producers. The following is a summary outlook for each of our segments, as well as an outlook on sales, capital expenditures, net interest expense, liquidity and share repurchases. Our accounting cycle results in a 53-week year in fiscal 2015 as compared to a 52-week year in fiscal 2014. Accordingly, the outlook is based on a 52-week year."