Shares of Tyson Foods Inc. (NYSE:TSN) shares jumped in after-hours trading after the company raised its guidance, reflecting the success of the beef segment of its business.
The company said in a statement that its adjusted earnings guidance for the 2017 fiscal year, which ends Saturday, has been increased to an adjusted U$5.20-5.30 per share from US$4.95-5.05, primarily due to stronger-than-expected earnings in the beef segment.
Guidance for fiscal 2018 is an adjusted US$5.70-5.85 earnings per share, which would be the seventh consecutive year of record adjusted earnings per share (EPS).
Shares in Tyson Foods were up 4.75% at US$68.50.
Restructuring
In its fiscal fourth quarter earnings report, Tyson Foods said it plans to report restructuring and other charges of approximately US$140mln to US$150mln, composed of an approximately US$70mln impairment for costs related to in-process software implementations, US$45mln to US$50mln in employee termination costs and US$25mln to US$30mln in contract termination costs.
Tom Hayes, Tyson’s president and chief executive officer, said the company is implementing its previously announced “Financial Fitness” plans.
“We are creating momentum behind our continuous improvement agenda as we know we can be even more efficient operators,” he said.