Market News & Headlines >> Tyson Foods has Record First Quarter
Top U.S. meat processor, Tyson Foods Inc., reported a 28.6% jump in profits for the first quarter of its 2017 fiscal year, citing increased export sales of both pork and beef and lower livestock costs for the strong results.
The company’s net income for the quarter ended Dec. 31 rose to $593 million, or $1.59 per share from $4.61 million or $1.15 per share a year earlier. Tyson President and CEO Tom Hayes noted on a conference call with analysts that the first quarter was the best in the company’s history, with record earnings, operating income and cash flows.
Tyson reported record first quarter operating income of $299 million for its beef segment on a record operating margin of 8.5%. Operating income for the company’s pork segment was also a record high at $247 million on a record 19.7% operating margin. ”Demand was strong and especially in the export markets,” Hayes said.
The company forecast fiscal 2017 earnings per share at $4.90-$5.05, representing growth of 12-15% over fiscal year 2016 adjusted earnings per share.
Despite the strong results, stock in Tyson Foods was down $2.77 per share or more than 4.2% in Monday afternoon trading after revealing that it had received a subpoena from the SEC that was “likely” related to alleged price fixing.
Analysts were also not impressed that the company projected 2017 sales revenue would be “approximately flat with 2016” as it grows volume across each segment, offset by lower beef prices. Tyson’s first quarter sales revenue rose only marginally year-over-year to $9.18 billion from $9.15 billion.