Tyson Foods’ net income tanks to £404 million in fiscal Q3
- Tyson Foods' net income tanks to £404 million in fiscal third quarter.
- The food company announces Dean Banks as its new CEO on Monday.
- Tyson Foods reports £261 million of incremental COVID-19 expenses.
Tyson Foods Inc. (NYSE: TSN) published its quarterly financial results on Monday that topped analysts’ estimates for earnings and missed on revenue.
Shares of the company were reported about 1% up in premarket trading on Monday. At £47 per share, Tyson Foods is currently more than 30% down year to date in the stock market after recovering from an even lower £34 per share in March. Learn more about how to choose winning stocks.
Tyson Foods’ Q3 financial results versus analysts’ estimates
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According to FactSet, experts had forecast the company to print £8.10 billion in revenue in the fiscal third quarter. In terms of earnings per share (EPS), they had estimated 72.14 pence. In its report on Monday, Tyson Foods fell shy of the estimate for revenue posting a lower £7.69 billion. £1.07 of adjusted earnings per share in Q3, however, was stronger than expected.
At £404.45 million, the American multinational corporation said that its net income in the recent quarter came in lower than £518.80 million in the same quarter last year. Previously, its net income tanked 15% in the second quarter in May.
The Springdale-based company said its beef sales tanked from £3.19 billion last year to £2.80 billion in Q3 despite an 11.6% increase in the beef price (average). Tyson attributed the decline in sales to lower capacity ascribed to a fire incident in Q1 that resulted in one of its production facilities to temporarily shut down.
Average pork price, on the other hand, climbed 0.8% in the recent quarter. Pork sales were recorded at £860 million versus the year-ago figure of £1.01 billion. Other prominent figures in the food company’s earnings report on Monday include £2.39 billion of chicken sales versus £2.56 billion in the comparable quarter of 2019. Chicken prices saw a 2.4% decline in prices in Q3.
Tyson said that lower chicken sales were attributed to COVID-19 that weighed on foodservice demand in recent months. The company also announced former tech executive, Dean Banks, as its new CEO on Monday.
Tyson Foods reports £261 million of incremental COVID-19 expenses
Tyson Foods valued its incremental expenses due to COVID-19 at £261 million in the third quarter. This included the cost of testing and PPE (personal protective equipment), and worker bonuses.
The world’s second-largest processor and marketer of pork, beef, and chicken cited the rising COVID-19 uncertainty as it refrained from giving its guidance for the full year.
At the time of writing, Tyson Foods is valued at £13.88 billion and has a price to earnings ratio of 11.35.