Tyson Foods’ fiscal 2016 is off to a strong start so far in what President and CEO Donnie Smith expects to be “another record year.”
The meat processor reported higher-than-expected earnings for its first quarter of 2016, with shares continuing to increase.
As of February 8, 2016, at 2:41 pm EST, shares in Tyson Foods were up 4.73% to $59.80.
Net income rose to $461 million from $310 million during the first quarter of 2015. Quarterly sales, however, fell short of beating last year’s number. Sales were reported at $9.1 billion, down approximately 15 percent from last year’s $10.8 billion.
“Solid execution across the entire team resulted in record earnings, record operating income, record margins, and record cash flows,” Smith said in a press release. “We captured $121 million in total synergies for the quarter, with $61 million incremental to fiscal first quarter 2015.”
The results generated for this quarter were driven primarily by lower animal and feed prices.
Sales for each of Tyson Foods’ segments are as follows:
Tyson Foods will be raising its fiscal 2016 earnings guidance to $3.85 to $3.95 per share due to its strong results for the quarter and its positive outlook on the rest of the year.
“We have a consumer-relevant portfolio packed with advantaged brands in advantaged categories, we have a superior supply chain, and we have a high-performing team focused on execution,” Smith continued. “I’m really excited about what’s ahead.”
For more on Tyson Foods’ financial performance in fiscal 2016, stay tuned to DeliMarket News.