Tyson Foods Q4 Profit Misses Estimates; Productivity Program Ahead Of Schedule

Tyson Foods, Inc. (TSN) reported that its fourth-quarter adjusted earnings per share declined 29% from a year ago. Adjusted operating income was $823 million, down 29% from prior year. Tyson Foods noted that its productivity program, announced one year ago and designed to deliver more than $1 billion in recurring annual savings by the end of 2024, has accelerated ahead of schedule and is now expected to be achieved by the end of fiscal 2023.

Fourth quarter adjusted net income per share was $1.63 compared to $2.30, prior year. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $1.73, for the quarter. Analysts’ estimates typically exclude special items.

Fourth quarter net income attributable to Tyson was $538 million compared to $1.36 billion, last year. GAAP EPS was $1.50, down 60% from prior year. Sales increased to $13.74 billion from $12.81 billion, previous year. Analysts on average had estimated $13.49 billion in revenue.

Fiscal 2022 adjusted EPS was $8.73, up 5% from prior year. Sales increased to $53.28 billion from $47.05 billion, prior year.

“We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein,” said Donnie King, president and CEO of Tyson Foods.

Looking forward, Tyson Foods expects sales to be $55 billion to $57 billion in fiscal 2023. The company expects total liquidity, which was approximately $3.3 billion at October 1, 2022, to remain above minimum liquidity target of $1.0 billion.

Effective November 11, 2022, the Board increased the quarterly dividend to $0.48 per share on class A common stock and $0.432 per share on class B common stock. The increased quarterly dividend is payable on December 15, 2022, to shareholders of record at the close of business on December 1, 2022.

The Board also declared a quarterly dividend of $0.48 per share on class A common stock and $0.432 per share on class B common stock, payable on March 15, 2023, to shareholders of record at the close of business on March 1, 2023.

The Board expects the remaining quarterly dividends in fiscal 2023 will be $0.48 and $0.432 per share of class A and class B common stock, respectively. This results in an annual dividend rate in fiscal 2023 of $1.92 for class A shares and $1.728 for class B shares, or a 4% increase compared to fiscal 2022 annual dividend rate.

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