Record Fiscal Year Earnings Expected From Tyson Foods
Springdale — Tyson Foods is having another record year as its chicken, beef and pork segments are well into the black and improvements continue on the turnaround of the meat giant’s prepared foods division. Tyson Foods reports fourth quarter and fiscal 2017 earnings early Monday (Nov. 13), reports Talk Business & Politics.
Profits are expected to be $494 million for the fourth quarter ending Sept. 30, or about $1.35 per share, according to the consensus estimate of 12 Wall Street analysts. A year ago, Tyson earned $392 million, or 96 cents per share. Profits are expected to be up 26% over the past year. Revenue is expected to be $9.16 billion, up 7% year-over-year.
It’s been a year since Tyson Foods announced CEO changes with Donnie Smith’s retirement and Tom Hayes taking the reins as CEO on Jan. 1. Hayes has since made several changes to the company’s corporate structure, most recently eliminating 450 corporate office jobs.
In late September, Hayes said the company is at a “time of transformation” and management is focused on “financial fitness” with reducing overhead costs as an area the company is examining. Procurement and supply chain are also areas he says synergies can take place given the acquisitions made by Tyson in the past few years.
“We made sure we have really tight corporate centers that focus on enabling the business growth in the future. We are not done. We have opportunities in manufacturing that still have not been done,” Hayes said in late September.
Wall Street has applauded Hayes’ move to reduce headcount and provide more transparency into the company’s expectations for 2018. Over the past five weeks, Wall Street raised its consensus earnings estimate for the fourth quarter and the company’s target price which is now $76.77.
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