NYSE$TSN

Tyson Foods Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Delivered strong sales and earnings growth, driven by a diverse portfolio and robust consumer demand for protein.

Tyson Foods reported strong fourth-quarter and fiscal year 2021 results, delivering double-digit sales and earnings growth. The company's performance was supported by its diverse portfolio and continued strength in consumer demand for protein. A new productivity program is being launched to achieve over $1 billion in annual savings by the end of 2024.

  • GAAP EPS of $3.71, up 107% from prior year; Adjusted EPS of $2.30, up 35% from prior year
  • GAAP operating income of $1,909 million, up 98% from prior year; Adjusted operating income of $1,152 million, up 26% from prior year
  • Total Company GAAP operating margin of 14.9%; Adjusted operating margin of 9.0%
  • Liquidity of $4.8 billion at October 2, 2021

Headline financials

Total Revenue

$12.8B

Previous: $11.5B+11.8%
EPS (adj)

$2.30

Previous: $1.81+27.1%
Net Income

$1.36B

Previous: $695M+95.4%
Operating Income

$1.91B

Previous: $1.01B+88.6%
Cash & Equivalents

$2.51B

Previous: $1.42B+76.5%
Total Assets

$36.3B

Previous: $34.7B+4.5%

Revenue & EPS history

Tyson Foods · Revenue · Quarterly

$12.8B

Q4 2021+11.8%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Tyson Foods · $13.3B total across 5 segments · Q4 2021

  • Beef
    $5.01B+17.3%
  • Chicken
    $3.87B+12.8%
  • Prepared Foods
    $2.25B-1.1%
  • Pork
    $1.65B+20.3%
  • International
    $546M+11.2%

Forward guidance

For fiscal 2022, the USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly as compared to fiscal 2021 levels. We are targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.

Tailwinds

  • Beef adjusted operating margin between 9% to 11% in fiscal 2022.
  • Pork segment's adjusted operating margin will be 5% to 7% in fiscal 2022.
  • Chicken adjusted operating margin at the lower end of 5% to 7% for fiscal 2022.
  • Prepared Foods adjusted operating margin will be around 7% to 9% in fiscal 2022.
  • Sales to approximate $49 billion to $51 billion in fiscal 2022.

Headwinds

  • USDA projects domestic beef production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021.
  • USDA projects domestic pork production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021.
  • USDA projects chicken production will increase slightly in fiscal 2022 as compared to fiscal 2021.
  • We expect net interest expense to approximate $380 million for fiscal 2022.
  • We currently expect our adjusted effective tax rate to be around 23% in fiscal 2022.

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 2021

Historical avgQ4 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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