NYSE$TSN

Tyson Foods Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Delivered strong earnings driven by Prepared Foods and Beef segments.

Tyson Foods reported strong operating earnings performance, exceeding $1 billion in operating income for the quarter. This was driven by higher earnings in Prepared Foods, Beef, and Chicken segments.

  • GAAP EPS of $1.28, down 7% from prior year; Adjusted EPS of $1.94, up 28% from prior year
  • GAAP operating income of $705 million, down 7% from prior year; Adjusted operating income of $1,025 million, up 24% from prior year
  • Total Company GAAP operating margin of 6.7%; Adjusted operating margin of 9.5%
  • Liquidity of $4.2 billion at January 2, 2021

Headline financials

Total Revenue

$10.5B

Previous: $10.8B-3.3%
EPS (adj)

$1.94

Previous: $1.66+16.9%
Capital Expenditures

-$289M

Previous: -$312M+7.4%
Free Cash Flow

$178M

Previous: $245M-27.3%
Net Income

$467M

Previous: $557M-16.2%
Operating Income

$705M

Previous: $826M-14.6%
Gross Profit

$1.18B

Previous: $1.44B-18.3%
Cash & Equivalents

$2.41B

Previous: $497M+384.1%
Total Assets

$35.5B

Previous: $33.8B+4.9%

Revenue & EPS history

Tyson Foods · Revenue · Quarterly

$10.5B

Q1 2021-3.3%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Tyson Foods · $10.8B total across 5 segments · Q1 2021

  • Beef
    $3.99B+3.9%
  • Chicken
    $2.83B-14.0%
  • Prepared Foods
    $2.11B-1.3%
  • Pork
    $1.44B+4.4%
  • International
    $469M-5.8%

Forward guidance

For the remainder of fiscal 2021, USDA indicates domestic protein production (beef, pork, chicken and turkey) to be flat as compared to fiscal 2020 levels. We expect sales to be near the upper end of $42 billion to $44 billion for fiscal 2021.

Tailwinds

  • We anticipate Prepared Foods results will improve in fiscal 2021 as compared to fiscal 2020
  • The Pork segment will remain strong, although not at fiscal 2020 levels.
  • We expect the Beef segment to deliver fiscal 2021 results that are similar or marginally lower as compared to fiscal 2020.
  • We expect improved results from our foreign operations in fiscal 2021.
  • Capital expenditures include spending for capacity expansion, growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that are expected to result in production and labor efficiencies, yield improvements and sales channel flexibility.

Headwinds

  • At current grain prices, we believe Chicken results will likely be lower in fiscal 2021 as compared to fiscal 2020.
  • These challenges are anticipated to increase our operating costs and negatively impact our volumes in fiscal 2021.
  • We estimate that we will incur approximately $440 million of direct incremental expenses associated with the impact of COVID-19; however, some of these incremental expenses may become permanent over time.
  • USDA projects a slightly lower outlook for chicken production in fiscal 2021 as compared to fiscal 2020.
  • Based on current futures prices, we expect feed costs to increase in fiscal 2021 as compared to fiscal 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.5%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+15.8%

Q1 2016

Best reaction

-19.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.2%+7.4%-11.3%
Q1 2026+0.3%-0.1%-3.7%
Q4 2025+2.3%+2.5%+9.5%
Q2 2025-7.6%-9.0%-8.5%
Q1 2025+2.2%+2.6%+7.5%
Q4 2024+7.6%+9.4%+4.1%
Q3 2024+0.5%+0.8%+7.3%
Q2 2024-5.0%-3.8%-9.1%
Q1 2024-1.7%-6.7%-5.3%
Q4 2023+1.7%+3.8%+11.4%
Q3 2023-2.5%-2.2%-8.7%
Q2 2023-19.6%-19.5%-15.4%
Q1 2023-4.1%-5.7%-8.6%
Q4 2022-4.6%-2.8%-4.5%
Q3 2022-8.6%-6.5%-15.5%
Q2 2022+1.4%-0.9%-3.9%
Q1 2022+11.8%+11.0%+2.7%
Q4 2021+2.9%+0.3%+5.8%
Q3 2021+11.9%+15.2%+7.1%
Q2 2021+0.8%+1.9%-1.8%
Q1 2021-5.4%-5.2%+9.0%
Q4 2020+2.3%-2.6%+4.6%
Q3 2020+6.0%+2.2%+3.2%
Q2 2020-5.0%+0.6%+0.1%
Q1 2020-4.5%-3.7%-23.1%
Q4 2019+7.4%+9.2%+5.8%
Q3 2019+6.6%+10.8%+7.9%
Q2 2019+2.3%+6.3%+7.4%
Q1 2019-2.6%+0.8%+3.1%
Q4 2018-4.6%-2.3%-9.0%
Q3 2018+3.7%+4.2%+8.2%
Q2 2018-0.5%+1.9%+1.8%
Q1 2018+2.0%+1.8%+3.1%
Q4 2017+2.6%+5.2%+11.5%
Q3 2017+2.7%+3.6%+2.6%
Q2 2017-8.6%-8.0%-4.5%
Q1 2017-1.1%-0.5%-5.3%
Q4 2016-12.5%-11.4%-8.0%
Q3 2016+1.1%+2.3%+2.2%
Q2 2016+3.0%
Q1 2016+15.8%
Q4 2015+12.5%
Q3 2015-6.2%
Q2 2015+0.4%
Q1 2015-1.6%
Q4 2014+4.9%
Q3 2014-0.9%
Q2 2014-10.3%
Q1 2014+4.4%
Q4 2013+7.0%
Q3 2013+7.7%
Q2 2013-1.3%
Q1 2013+3.2%
Q4 2012+13.0%
Q3 2012-4.1%
Q2 2012+6.7%
Q1 2012+2.8%
Q4 2011-0.5%
Q3 2011+2.5%
Q2 2011-5.0%
Q1 2011+2.4%
Q4 2010+3.5%
Q3 2010-6.2%
Q2 2010-3.2%
Q1 2009+7.9%

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