NYSE$TSN

Tyson Foods Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Tyson Foods reported a strong fourth quarter and fiscal year 2020 results.

Tyson Foods reported strong Q4 and fiscal year 2020 results, with GAAP EPS up 88% and GAAP operating income up 68% compared to the prior year. The company remains focused on worker health and safety, and long-term growth, while navigating pandemic-related challenges.

  • GAAP EPS of $1.90, up 88% from prior year; Adjusted EPS of $1.81 (13-week basis), up 50% from prior year
  • GAAP operating income of $1,012 million, up 68% from prior year; Adjusted operating income of $961 million (13-week basis), up 40% from prior year
  • Total Company GAAP operating margin of 8.8%; Adjusted operating margin of 9.0% (13-week basis)
  • Liquidity of $3.2 billion at October 3, 2020

Headline financials

Total Revenue

$11.5B

Previous: $10.9B+5.3%
EPS (adj)

$1.81

Previous: $1.21+49.6%
Net Income

$695M

No prior period
Operating Income

$1.01B

No prior period
Cash & Equivalents

$1.42B

No prior period
Total Assets

$34.7B

No prior period

Revenue & EPS history

Tyson Foods · Revenue · Quarterly

$11.5B

Q4 2020+5.3%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Tyson Foods · $11.8B total across 5 segments · Q4 2020

  • Beef
    $4.27B
  • Chicken
    $3.43B
  • Prepared Foods
    $2.28B
  • Pork
    $1.37B
  • International
    $491M

Forward guidance

For fiscal 2021, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 1% from fiscal 2020 levels. On an adjusted basis, we anticipate the Beef and Pork segments will remain strong, although not at fiscal 2020 levels, and we believe the Chicken and Prepared Foods segments will likely strengthen in fiscal 2021 as compared to fiscal 2020.

Tailwinds

  • USDA projects domestic production will increase approximately 2% in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020.
  • We also expect sufficient supplies in regions where we operate our plants.
  • USDA projects relatively flat to slightly increased domestic production in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020.
  • USDA projects a relatively flat to slightly increased outlook for chicken production in fiscal 2021 as compared to fiscal 2020.
  • We expect improved results from our foreign operations in fiscal 2021.

Headwinds

  • These challenges are anticipated to increase our operating costs and negatively impact our volumes into fiscal 2021.
  • We cannot currently predict the ultimate impact that COVID-19 will have on our short- and long-term demand, as it will depend on, among other things, the severity and duration of the COVID-19 crisis.
  • COVID-19 – We continue to proactively manage the company and its operations through this global pandemic.
  • Given the nature of our business, demand for food and protein may shift amongst sales channels and experience disruptions, but over time we expect worldwide demand to continue to increase.
  • We are experiencing multiple challenges related to the pandemic.

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 Q4 2020

Historical avgQ4 2020

+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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