Tyson Foods Q1 Net Income Leaps
by January 31, 2014 8:20 am 83 views
Fiscal first quarter net income for Springdale-based Tyson Foods was $254 million, well ahead of the $173 million in the first quarter of 2013 and outpacing the consensus Wall Street estimate by $28 million.
Total revenue in the quarter was $8.761 billion, better than the $8.366 billion in the first quarter of 2013, the company announced in an earnings statement issued early Friday (Jan. 31).
The per share earnings of 72 cents was much better than the consensus Wall Street estimate of 64 cents per share.
“I’m very pleased with our strong first quarter results, and I’m confident in my expectations for the full year,” Donnie Smith, president and CEO of Tyson Foods, said in the earnings statement. “We’re growing sales and earnings and executing our strategy – including making our third prepared foods acquisition in less than a year – while reinvesting in our existing businesses and buying back shares.”
Sales were higher in all four primary segments of the company, with sales volume up 4.1% in the beef segment and up 3.6% in the chicken segment.
Operating income for the chicken segment rose to $225 million, more than double the $111 million in the same quarter of fiscal year 2013.
“Operating income was positively impacted by increased sales volume, operational improvements and lower feed ingredient costs of $170 million,” the company noted in the earnings statement.
Despite tough conditions in the beef industry, Tyson Foods’ beef segment posted operating income of $58 million in the quarter, better than the $46 million during the same period of 2013.
Company officials said they expect fiscal year 2014 revenue to reach $36 billion by “accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production.” Revenue in 2013 was $34.374 billion.
Shares of Tyson Foods (NYSE: TSN) were set to open Friday at $34.52. During the past 52 weeks the share price has ranged from a $35.74 high to a $21.79 low.