Post-Earnings Analysis - Tyson Foods

LONDON, December 9, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Tyson Foods Inc. (NYSE: TSN). On November 17, 2014, the company reported its Q4 FY14 and full-year FY14 financial results (period ended September 27, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Tyson Foods Inc. (Tyson). For Q4 FY14 and FY14, the company reported record sales of $10.1 billion and $37.6 billion, respectively, an increase of 14% and 9%, respectively, on a Y-o-Y basis. The President and CEO of Tyson Foods, Mr. Donald Smith, stated that the company delivered record sales and earnings for second year in a row. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q4 FY14, Tyson's sales volume from its chicken, prepared foods and international segments increased 2.3%, 25.5% and 7.3%, respectively, on Y-o-Y basis. Meanwhile, Q4 FY14 sales volume for beef and pork segments decreased 2.6% and 0.3%, respectively, from Q4 FY13. The free research on TSN can be downloaded as in PDF format at:

http://www.Investor-Edge.com/TSNFreeReport

For Q4 FY14, net income attributable to Tyson's shareholders narrowed to $137 million, or $0.35 per diluted share, from $261 million, or $0.70 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected the company to report net income of $289 million, or $0.73 per diluted share. Tyson's Q4 FY14 adjusted EPS from continuing operations increased to $0.87 from $0.70 in Q4 FY13.

Tyson's FY14 sales volume from its chicken, pork, prepared foods and international segments grew 2.6%, 0.8%, 10.4%, and 12.2%, respectively on Y-o-Y basis, while sales volume for its beef segment fell marginally by 0.4% from FY13.

In FY14, net income attributable to Tyson's shareholders increased to $864 million, or $2.37 per diluted share, from $778 million, or $2.12 per diluted share, in FY13. The company's FY14 net income trailed Bloomberg analysts' forecasts of $1,024 million, or $2.81 per diluted share. Tyson's adjusted EPS from continuing operations increased 30% Y-o-Y to $2.94 from $2.26 in FY13. Sign up and read the free analyst's notes on TSN at:

http://www.Investor-Edge.com/TSN-09122014

On November 13, 2014, Tyson increased the quarterly dividend previously declared on July 30, 2014, to $0.10 per share on its Class A common stock and $0.09 per share on its Class B common stock. The increased quarterly dividend is payable on December 15, 2014, to shareholders as of record on December 1, 2014. Further, Tyson's board also declared a quarterly dividend of $0.10 per share on its Class A common stock and $0.09 per share on its Class B common stock, payable on March 13, 2015, to shareholders as of record on February 27, 2015.

For FY15, Tyson expects sales of approximate $42 billion and overall domestic protein production (chicken, beef, pork and turkey) to increase approximately 1% on Y-o-Y basis. Mr. Smith mentioned that the merger of Hillshire Brands and Tyson will be seen as a watershed event for the company. He further said that Tyson is setting higher expectations and anticipating more growth and increased profitability, specifically in the Chicken and Prepared Foods segments. The CEO added that in the long-term, the company's chicken segment should generate a 7-9% return on sales, although the company expects FY15 to be particularly strong with a return of more than 10%. He concluded by stating that FY15 is expected to be another great year and is already off to a strong start, and the company is projecting adjusted earnings for FY15 in the range of $3.30-3.40 per share. Visit Investor-Edge and access the latest research on TSN at:

http://www.Investor-Edge.com/TSNEarningsCoverage

Stock Performance  

On the day of the earnings release, November 17, 2014, Tyson's stock ended the session at $43.03, up 5.83%. However, the stock is down 4% since then. On the last close, Monday, December 08, 2014, the company's shares finished at $41.31, down 0.82%, after vacillating between $41.01 and $41.89. A total of 4.08 million shares were traded which was below its three months average volume of 4.29 million shares. Over the last one month and over the past three months, shares of Tyson have advanced 0.49% and 7.80%, respectively. Additionally, the stock has surged 23.46% since the beginning of 2014. Shares in Tyson closed above their 50-day and 200-day moving averages of $40.45 and $39.72, respectively. Furthermore, the stock traded at a PE ratio of 17.46.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 16 insider transactions made by 13 individuals. Between November 18, 2014 and November 21, 2014, a total of 1,459,387 shares have been purchased at an average price of $41.24 per share and for a total value of $60.18 million. The following are some of the insider trading transactions during the stated period: Donnie King, who oversees Tyson's poultry, fresh meats and non-branded prepared foods businesses, purchased 190,921 shares at an average price of $34.43 per share, and, on November 18, 2014, he sold a total of 80,000 shares at an average price of $23.73 per share. On November 21, 2014, Donald Smith and John H. Tyson, Chairman at Tyson, bought 289,005 and 231,239 shares, respectively, at $42.26 per share. Complimentary in-depth research on TSN is available at:

http://www.Investor-Edge.com/TSNInsiderTrading

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