Tyson Foods Boosts Profit Outlook for 2016
09 May 2016 - 10:50PM
Dow Jones News
Tyson Foods Inc. raised its profit forecast for the year, as the
meat supplier reported better-than-expected earnings and revenue in
the second quarter, helped by continued strong consumer demand.
The company raised its full-year profit forecast to a range of
$4.20 to $4.30 a share, compared with prior guidance of $3.85 to
$3.95 a share, which was already a projected record for annual
earnings at the company.
Shares, which have risen 63% in the past 12 months, rose 4.1%
premarket.
The Springdale, Ark., company has benefited in recent quarters
from robust consumer spending, increased meat supplies and low
prices for animal feed.
Donnie Smith, Tyson's chief executive, said the second quarter
is typically is most challenging of its fiscal year. "We've
produced record results in the first half of the fiscal year, and
we expect continued strong performance in the second half," Mr.
Smith said.
Tyson, the largest U.S. meat processor by sales, has said that
expanding cattle, hog and poultry supplies would reduce costs for
its prepared-foods business, while its restaurant clients would
benefit from freer-spending consumers.
In the second quarter, the company expanded its adjusted
operating margin to 7.7%, which Tyson said was a record for the
period, from 5.5% a year before.
Over all, Tyson posted a profit of $432 million, or $1.10 a
share, up from $310 million, or 75 cents a share, a year earlier.
Excluding certain items, per-share earnings were $1.07, up from 75
cents. Analysts surveyed by Thomson Reuters forecast per-share
earnings of 95 cents.
Revenue slid 8.1% to $9.17 billion. Analysts had anticipated
$9.04 billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 09, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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