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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

Tyson Foods higher in early trade after market beating fourth quarter results

It also said that there are no plans to undertake a share repurchase programme until a net debt of around twice EBITDA

Tyson Foods Inc (NYSE:TSN) saw its shares ease in early trade on Monday after its fourth quarter results beat Wall Street’s expectations.

In a statement, the company said net income for the quarter came in at US$394.0mln, or US$1.07 per share, up from US$391.0mln, or US$1.03 per share, for the same period last year.

READ: Tyson Foods shares get a fillip after higher guidance, thanks to beef segment

Adjusted EPS stood at US$1.43, soundly outperforming the US$1.35 expected by analysts.

In the quarter, revenue grew to US$10.1bn, from the US$9.2bn recorded the year before, also beating market consensus for US$9.9bn.

Tyson brands include Jimmy Dean, Hillshire Farm, Ball Park and its namesake.

The company started its divestment programme during the quarter, offloading its non-protein businesses, to focus only on protein brands.

Tyson Foods is also integrating the recently acquired AdvancePierre Foods, which will provide manufacturing capabilities for sandwiches and prepared foods and increase Tyson's presence at convenience stores, said Chief Executive Tom Hayes.

The company issued a guidance for US$200mln in savings in fiscal 2018, and US$1.4bn in fiscal year capital expenditures.

READ: Tyson Foods sees higher revenue in third quarter, confident on outlook

It also said that there are no plans to undertake a share repurchase programme until a net debt of around twice EBITDA (earnings before interest, taxes, depreciation and amortisation).

Its shares were down 1.03% at US$73.44 in early trade.

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