Tyson Foods beats by $0.05, beats on revs; reaffirms FY19 EPS, revs guidance (75.09)
- Reports Q2 (Mar) earnings of $1.20 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $1.15; revenues rose 6.9% year/year to $10.44 bln vs the $10.25 bln S&P Capital IQ Consensus.
- "Looking ahead, African Swine Fever has the potential to impact the global protein industry on a level that we have never experienced, and it is an event that will underscore the power of the Tyson business model. While Tyson's diversity across segments provides stability and puts us in a position to capitalize when opportunities arise, all proteins could see a benefit. A worldwide decrease in pork supply would offer significant upside to our pork business, while also lifting the chicken and beef businesses as substitutes and increasing raw material costs in our prepared foods business...Our forecasts for the current fiscal year do not include any potential effects from ASF as we do not have clarity on when the impact might occur or what the magnitude could be. To date, pork pricing hasn't kept pace with increased hog costs, leading us to believe any positive ASF impact would occur in late fiscal 2019 into fiscal 2020 and beyond."
- Co reaffirms guidance for FY19, sees EPS of $5.75-6.10, excluding non-recurring items, vs. $5.95 S&P Capital IQ Consensus; sees FY19 revs of ~$43 bln vs. $42.46 bln S&P Capital IQ Consensus