Join        Login             Stock Quote

Tyson Foods (TSN) Q2 Earnings, Sales Rise

 May 07, 2012 08:05 AM

Meat processor Tyson Foods Inc.(NYSE:TSN) posted 4.5 percent increase in second-quarter earnings on growth in sales.

Earnings attributable to Tyson were $166 million or $0.44 per share for the quarter, up from $159 million or $0.42 per share in the year-ago quarter.

Sales rose 3.4 percent to $8.3 billion.

Analysts, on average, polled by Thomson Reuters expected earnings of $0.39 per share on sales of $8.49 billion.

Gross margins contracted to 6.5 percent from 6.7 percent.

Tyson Foods, led by CEO Donnie Smith, is one of the world's largest processors and marketers of chicken, beef and pork. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and food service markets.

[Related -Futures Down Ahead Of Service Sector Data; Compugen Ltd. (CGEN) Soars]

"The chicken, pork and prepared foods segments all were in or above their normalized operating margin ranges, while Beef essentially broke even despite extremely challenging market conditions," Donnie Smith commented on second-quarter results.

Tyson Foods has been hit by decreased domestic demand for chicken and beef coupled with higher feed ingredient costs.

Sales volumes at beef and chicken segments declined 10.7 percent and 1.6 percent respectively, for the second quarter.

In the preceding first quarter, Tyson Foods' earnings declined to $156 million, or 42 cents a share, down from $298 million or 78 cents a share, in the same quarter last year. However, sales rose 9.4 percent to $8.3 billion on higher selling prices.

[Related -Hormel Foods Corp. (HRL) Dividend Stock Analysis]

Looking ahead for the full year, Tyson forecasts sales to approximate $34 billion , mainly driven by price increases related to decreases in domestic availability of protein and rising raw material costs.

For chicken segment, the company still expects industry production to fall about 4 percent for 2012 from last year levels. The company expects its beef segment to be profitable for the year, returning to its normalized range in the fourth quarter.

One of the company's key competitors is Hormel Foods (NYSE:HRL), which will report its second-quarter earnings on May 23. Wall Street expects Hormel Foods to earn 42 cents a share on revenue of $2.05 billion for the second quarter.

TSN shares closed Friday's regular trading at $18.04. The stock has been trading in the 52-week range between $15.60 and $21.06.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.