A trying meat market, instability resulting from escalating trade tensions, and problems of oversupply continued to plague Tyson Foods this quarter—but the maker of Jimmy Dean, Hillshire Farm, and Ball Park brand product is weathering those conditions with aplomb. After lowering its expected earnings late last month, the protein provider reported solid third quarter earnings this week—including strong showings from the company’s beef and prepared foods segments.
“We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing,” said Tom Hayes, President and Chief Executive Officer, in a statement. “In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income, and margins.”
Highlights from the company’s third quarter include:
The company noted that, despite sluggish sales from chicken and pork segments, Tyson’s well-rounded family of operations continued to buoy the company’s overall results.
“Our diverse portfolio continues to be a key advantage for us. Our Beef and Prepared Foods segments had a strong quarter, helping to balance the results in our Chicken and Pork segments, which faced stiff headwinds,” added Hayes. “We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value.”
The company noted its continuing work to narrow its “strategic focus on protein brands,” including the sale of many of prepared food assets under the Sara Lee®, Kettle, and Van’s® brand, and predicted significant synergies from the integration of AdvancePierre to continue to benefit the company throughout 2018. Tyson also noted tax savings under the terms of the Tax Cuts and Jobs Act, signed into law late last year.
Despite solid growth, MarketWatch reported that the company fell short of analysts’ expectations. The company further adjusted its expectation for the fiscal year, and Tyson now expects to earn between $5.70 a share and $6 a share on an adjusted basis, down from its previous guidance of between $6.55 a share and $6.70 a share.
To read the company's earnings report in its entirety, click here.
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