NYSE$TSN

Tyson Foods Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported increased sales, volume growth, and strong operating results.

Tyson Foods reported a strong third quarter with increased sales and volume growth, driven by strong consumer demand and the reopening of the restaurant industry. The company also reduced debt and invested in future growth.

  • GAAP EPS of $2.05, up 42% from prior year; Adjusted EPS of $2.70, up 93% from prior year
  • GAAP operating income of $1,062 million, up 37% from prior year; Adjusted operating income of $1,372 million, up 81% from prior year
  • Total Company GAAP operating margin of 8.5%; Adjusted operating margin of 10.8%
  • Liquidity of $3.4 billion at July 3, 2021

Headline financials

Total Revenue

$12.5B

Previous: $10B+24.5%
EPS (adj)

$2.70

Previous: $1.40+92.9%
Capital Expenditures

-$859M

Previous: -$907M+5.3%
Free Cash Flow

-$110M

Previous: -$380M+71.1%
Net Income

$749M

Previous: $527M+42.1%
Operating Income

$1.06B

Previous: $775M+37.0%
Gross Profit

$1.62B

Previous: $1.31B+23.4%
Cash & Equivalents

$1.61B

Previous: $1.37B+18.2%
Total Assets

$35.7B

Previous: $34.6B+3.2%

Revenue & EPS history

Tyson Foods · Revenue · Quarterly

$12.5B

Q3 2021+24.5%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Tyson Foods · $13B total across 5 segments · Q3 2021

  • Beef
    $4.95B+35.6%
  • Chicken
    $3.48B+11.7%
  • Prepared Foods
    $2.32B+14.2%
  • Pork
    $1.72B+53.8%
  • International
    $488M+21.4%

Forward guidance

Tyson Foods expects sales to approximate $46 billion to $47 billion in fiscal 2021. Capital expenditures are expected to be approximately $1.3 billion. Net interest expense is expected to approximate $420 million. The adjusted effective tax rate is expected to be around 22.5% in fiscal 2021.

Tailwinds

  • USDA projects domestic beef production will increase approximately 3% in fiscal 2021 as compared to fiscal 2020.
  • We expect improved results from our foreign operations in fiscal 2021.
  • Capital expenditures are expected to result in increased capacity, production and labor efficiencies, yield improvements and sales channel flexibility.
  • We expect total liquidity to remain above our minimum liquidity target of $1.0 billion.
  • Because of stronger than expected performance in beef and current market conditions, we expect Beef to deliver improved fiscal 2021 results as compared to fiscal 2020.

Headwinds

  • USDA projects chicken production will decrease less than 1% in fiscal 2021 as compared to fiscal 2020.
  • USDA projects domestic pork production will be relatively flat in fiscal 2021 as compared to fiscal 2020.
  • At current grain prices, we believe Chicken results will likely be lower in fiscal 2021 as compared to fiscal 2020.
  • On an adjusted basis, we anticipate Prepared Foods results in fiscal 2021 to be similar to fiscal 2020, and Pork results will likely be lower in fiscal 2021 as compared to fiscal 2020.
  • We estimate that we will incur approximately $325 million of direct incremental expenses associated with the impact of COVID-19; however, some of these incremental expenses may become permanent over time.

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro