Tyson Foods Inc. (TSN) - Get Report posted stronger-than-expected fourth quarter earnings Monday thanks in part to a resurgence in beef and pork purchases from U.S. consumers as the coronavirus pandemic waned over the summer months.
Tyson Foods said adjusted earnings for the three months ending in September, the group's fiscal fourth quarter, were pegged at $1.81 per share, up 49.5% from the same period last year and well ahead of the Street consensus forecast of $1.19 per share. Group revenues, Tyson said, rose 5.3% to $11.46 billion, again topping analysts' forecast of an $11 billion tally.
Tyson Foods said it sees fiscal 2021 revenues in the rate of $42 billion to $44 billion, an increase of 3.8% at the higher end of the forecast from fiscal 2020. Tyson also said it absorbed around $540 million in coronavirus-related costs for its 2020 financial year, including those linked to plant closures, safety measures, testing and product downgrades.
“Our business performed well and delivered strong fourth quarter and full-year results,” said CEO Dean Banks. “Our team members, agricultural partners, and customers have shown resilience. This has enabled us to maintain and accelerate our efforts to provide global consumers with a safe and accessible food supply.”
“While we will continue to face pandemic-related challenges in fiscal 2021, we’re settling the business down to be focused on executing our long-term strategy while generating strong returns for shareholders," Banks added. "I’m excited for the opportunities ahead for this great company, and am certain we have the people, products, and strategies in place to drive future growth.”
Tyson Foods shares were marked 1.5% higher in early trading following the earnings release to change hands at $63.31 each, a move that would extend their six-month gain to around 5.5%.