Tyson Foods tops Wall Street estimates in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 16, 2020
  • Tyson Foods tops Wall Street estimates in the fiscal fourth quarter.
  • The food company forecasts up to £33.37 billion of full-year revenue.
  • The U.S. firm raised its quarterly dividend on Class A and B common stocks.

Tyson Foods Inc. (NYSE: TSN) reported its financial results for the fiscal fourth quarter on Monday that topped analysts’ estimates for earnings and revenue. The company also reinstated its dividend for fiscal 2021.

Tyson Foods opened close to 2.5% up in the stock market on Monday. The U.S. company is currently more than 25% down year to date in the stock market but has recovered nearly 40% since its low in March due to the ongoing COVID-19 crisis. The price action should come in handy if you are interested in investing in the stock market online.

Tyson Foods’ Q4 financial results versus analysts’ estimates

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Tyson Foods said that its net income in Q4 printed at £524.77 million that translates to £1.44 per share. In the same quarter last year, its net income was capped at a lower £279.83 million or 77 pence per share. In the prior quarter (Q3), Tyson Foods’ net income slid to £404 million due to COVID-19 restrictions.

The Coronavirus pandemic has so far infected more than 1.1 million people in the United States and caused over a quarter million deaths. In separate news from the U.S., cybersecurity company, Palo Alto Networks, also published its quarterly earnings report on Monday.

On an adjusted basis, the American multinational corporation earned £1.37 per share in the recent quarter that represents a 50% annualised increase. In terms of sales, Tyson Foods posted £8.69 billion in Q4 versus the year-ago figure of £8.25 billion.

According to FactSet, analysts had forecast the company to record £8.35 billion of revenue in the fourth quarter. Their estimate for adjusted EPS stood at 90 pence per share. The Springdale-based company valued its COVID-19-related expenses at £151.67 million in Q4 and £409.50 million for the fiscal year.

Tyson Foods’ guidance for full fiscal 2021

For full fiscal 2021, Tyson anticipates its revenue to fall in the range of £31.85 billion to £33.37 billion. In comparison, FactSet Consensus for annual revenue stands at £33.46 billion. The food company raised its quarterly dividend late last week to 34 pence per share and 30 pence per share for Class A and Class B common stocks, respectively.

Tyson Foods performed largely upbeat in the stock market last year with an annual gain of about 65%. At the time of writing, it is valued at £14.11 billion and has a price to earnings ratio of 12.62.

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