Foodservice

Tyson Foods Q4 earnings rise as revenue misses market expectations

Logo provided.

November 16, 2020

Tyson Foods Inc., which owns brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidels, ibp and Stare Fair, reported $11.45 billion in fourth quarter sales for the three months ending Oct. 3, 2020, marking a gain over the $10.88 billion for last year's fourth quarter.

Adjusted sales of $10.64 billion declined by 2.2% from $10.88 billion in last year's fourth quarter, missing market expectations by $390 million, according to Seeking Alpha.

Non-GAAP earnings per share of $1.81 beat market expectations by 62 cents, while GAAP EPS of $1.90 beat expectations by 70 cents. GAAP earnings per share of $1.90, marked an 88% gain over last year's fourth quarter. Adjusted EPS was $1.81, a 50% gain over last year.

Shares traded at $63.89 today against a 52-week range of $42.57-$94.24.

"Our business performed well and delivered strong fourth quarter and full-year results," Dean Banks, president and CEO, said in a press release. "Our team members, agricultural partners, and customers have shown resilience. This has enabled us to maintain and accelerate our efforts to provide global consumers with a safe and accessible food supply."

"While we will continue to face pandemic-related challenges in fiscal 2021, we're settling the business down to be focused on executing our long-term strategy while generating strong returns for shareholders," Banks said.

Direct incremental expenses associated with the impact of COVID-19 totaled approximately $200 million and $540 million for the fourth quarter and 12 months of fiscal year 2020, respectively. These expenses primarily included team member costs associated with worker health and availability and production facility downtime, including direct costs for personal protection equipment, production facility sanitization, COVID-19 testing, donations, product downgrades and rendered product, partially offset by CARES Act credits.

Other indirect costs associated with COVID-19 are not reflected in this amount, including costs associated with raw materials, distribution and transportation, plant underutilization and reconfiguration, premiums paid to cattle producers and pricing discounts.

For an update on how the coronavirus pandemic is affecting convenience services, click here.