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Tyson Foods
🇺🇸 NYSE:TSN
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•
Jan 02, 2021

Tyson Foods Q1 2021 Earnings Report

Delivered strong earnings driven by Prepared Foods and Beef segments.

Key Takeaways

Tyson Foods reported strong operating earnings performance, exceeding $1 billion in operating income for the quarter. This was driven by higher earnings in Prepared Foods, Beef, and Chicken segments.

GAAP EPS of $1.28, down 7% from prior year; Adjusted EPS of $1.94, up 28% from prior year

GAAP operating income of $705 million, down 7% from prior year; Adjusted operating income of $1,025 million, up 24% from prior year

Total Company GAAP operating margin of 6.7%; Adjusted operating margin of 9.5%

Liquidity of $4.2 billion at January 2, 2021

Total Revenue
$10.5B
Previous year: $10.8B
-3.3%
EPS
$1.94
Previous year: $1.66
+16.9%
Gross Profit
$1.18B
Cash and Equivalents
$2.41B
Previous year: $497M
+384.1%
Total Assets
$35.5B
Previous year: $33.8B
+4.9%

Tyson Foods

Tyson Foods

Tyson Foods Revenue by Segment

Forward Guidance

For the remainder of fiscal 2021, USDA indicates domestic protein production (beef, pork, chicken and turkey) to be flat as compared to fiscal 2020 levels. We expect sales to be near the upper end of $42 billion to $44 billion for fiscal 2021.

Positive Outlook

  • We anticipate Prepared Foods results will improve in fiscal 2021 as compared to fiscal 2020
  • The Pork segment will remain strong, although not at fiscal 2020 levels.
  • We expect the Beef segment to deliver fiscal 2021 results that are similar or marginally lower as compared to fiscal 2020.
  • We expect improved results from our foreign operations in fiscal 2021.
  • Capital expenditures include spending for capacity expansion, growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that are expected to result in production and labor efficiencies, yield improvements and sales channel flexibility.

Challenges Ahead

  • At current grain prices, we believe Chicken results will likely be lower in fiscal 2021 as compared to fiscal 2020.
  • These challenges are anticipated to increase our operating costs and negatively impact our volumes in fiscal 2021.
  • We estimate that we will incur approximately $440 million of direct incremental expenses associated with the impact of COVID-19; however, some of these incremental expenses may become permanent over time.
  • USDA projects a slightly lower outlook for chicken production in fiscal 2021 as compared to fiscal 2020.
  • Based on current futures prices, we expect feed costs to increase in fiscal 2021 as compared to fiscal 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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