Tyson Foods, Inc. (TSN) reported first-quarter adjusted EPS of $1.81, up 14% from last year. The company said lower enacted tax rates positively impacted the first-quarter adjusted EPS by $0.21 and expects a fiscal 2018 benefit of approximately $0.85 on an adjusted basis. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $1.50 for the quarter. Analysts' estimates typically exclude special items. First-quarter GAAP EPS was $4.40, up 177% from last year. Net income to Tyson was $1.63 billion compared to $593 million.
First-quarter sales were $10.23 billion compared to $9.18 billion, prior year. Analysts expected revenue of $9.87 billion, for the quarter. Prepared Foods sales rose 11.6% year-over-year to $2.29 billion. Beef sales were up 4.5% to $3.89 billion.
For fiscal 2018, Tyson Foods expects sales to grow 6-7% to approximately $41 billion which is attributed to incremental AdvancePierre sales of $1.1 billion, an increase in sales volume in legacy businesses and an improvement in mix predominantly in Chicken segment. Including the benefit of lower enacted tax rates but excluding the one-time cash bonuses, adjusted EPS guidance for fiscal 2018 is $6.55-$6.70, which represents an approximate 23-26% increase from fiscal 2017 adjusted EPS.
Tyson Foods said it currently does not plan to repurchase shares other than to offset dilution from equity compensation programs. The company will consider additional share repurchases when its net debt to EBITDA ratio is around 2x, which it currently anticipates will occur in the third quarter of fiscal 2018.
Shares of Tyson Foods were up 6% in pre-market trade on Thursday.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org