Q3 2015 Financial Results - Report on Tyson Foods, Inc.

Aug 10, 2015, 09:00 ET from www.aciassociation.com

NEW YORK, August 10, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Tyson Foods, Inc. (NYSE: TSN). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=TSN

Highlights from our TSN Report include:

  • Tyson Misses Earnings and Sales Expectations - On August 3, 2015, Tyson Foods, Inc. reported Q3 2015 total sales of $10.1 billion, up by 4% Y-o-Y. The Company reported an operating income of $563 million as compared to $351 million in Q3 2014. Net income attributable to Tyson rose 31.92% to $343 million or 0.83 per diluted share, compared to $260 million or 0.73 per diluted share in Q3 2014. The Company earned adjusted EPS of $0.80, up 7% from $0.75 in prior year. However, the same was below analysts average estimate of $0.92 per share, according to Thomson Reuters I/B/E/S. Additionally, analysts had forecast sales of $10.3 billion for the quarter.
  • Segment Sales Performance - Tyson Foods' sales volumes in Chicken segment grew 2.9% as a result of stronger demand for chicken products and mix of rendered product sales. Sales volume in Beef segment decreased by 3.9% due to a reduction in live cattle processed while the average sales price increased 6.9% due to lower domestic availability of beef products. Pork segment's sales volume decreased 4.8% due to the divestiture of Heinold Hog Markets business in the Q1 2015. Sales volume in Prepared Foods segment increased 77.4% due to incremental volumes from the acquisition of Hillshire Brands. The Company's International sales volume saw a decline of 25.3% as it closed the sale of its Brazilian operation during the Q1 2015 and due to weak demand in China, partially offset by stronger demand in Mexico.  
  • CEO's note - Donnie Smith, President and CEO of Tyson Foods stated, "Our beef business suffered from export market disruptions that had an $84 million impact on third quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realize expected revenue levels in this spread business." The beef segment posted an operating loss of $7 million, a wide swing from the $101 million operating income posted in the same quarter of 2014.
  • Guidance update - The Company's outlook includes sales of c. $41 billion for fiscal 2015 and fiscal 2016, each. The Company expects its capital expenditures to approximate $900 million for fiscal 2015 and range between $900 - $950 million for fiscal 2016. Tyson also expects fiscal 2015 adjusted earnings in the range of $3.10 to $3.20 per share, below its previous forecast for earnings of $3.30 to $3.40. However, the same was below Wall Street forecasts for earnings of $3.44 a share, as per FT.com.

To find out how this influences our rating on Tyson Foods, Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=TSN

--

About ACI Association: 

Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:  

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.

NO WARRANTY 

ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING 

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.

RESTRICTIONS 

ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE www.aciassociation.com