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Tyson Stock Heats Up on Fourth-Quarter Earnings Beat

Tyson Foods cites 'continued strength in consumer demand for protein' as it posts better-than-expected fourth-quarter earnings.
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Tyson Foods  (TSN) - Get Tyson Foods, Inc. Class A Report climbed Monday after the world's biggest food producer beat Wall Street's fourth-quarter earnings expectations. 

Shares of the Springdale, Arkansas company were up nearly 4% to $84.33 at last check.

Tyson reported net income $1.36 billion, or $3.71 a share, up from $654 million, or $1.79 a share, a year ago.

Adjusted earnings came to $2.30 a share, beating the FactSet consensus for $2.22. Sales totaled $12.81 billion, up from $11.46 billion a year ago, and surpassing the FactSet consensus for $12.66 billion.

Looking ahead, Tyson Foods said it expect sales to range from $49 billion to $51 billion in fiscal 2022. The FactSet consensus calls for annual sales of $47 billion.

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Donnie King, president and CEO, said in a statement that the results were "supported by our diverse portfolio and continued strength in consumer demand for protein."

"We delivered a record performance in our beef segment and experienced share gains in our retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands, while supporting the continued recovery in foodservice," he said.

Tyson Foods said it is launching a new productivity program designed to deliver more than $1 billion in annual savings by the end of 2024 and $300 million to $400 million in fiscal 2022.

The company said it had direct incremental expenses related to Covid-19 of roughly $65 million and $335 million for the fourth quarter and fiscal 2021, respectively.

At least 59,000 meatpacking workers became ill with COVID-19 and 269 workers died, according to a report released last month by the U.S. House Select Subcommittee on the Coronavirus Crisis.

In June, former CEO Dean Banks left the company for "personal reasons" after less than a year at the helm.