Tyson Swings to Q4 Profit, But Tanks on Disappointing Guidance

Nov.12.07 | About: Tyson Foods (TSN)

Tyson Foods returned to profitability in its fiscal fourth-quarter, recording net income of $32 million, or $0.09/share, compared to a loss of $56M ($0.17) last year. However, EPS were a penny short of analysts' average estimate. Tyson is down nearly 12% to $13.00 in thin pre-market activity on disappointing fiscal 2008 guidance. Tyson warned it expects it will incur about $300M in additional grain costs for its chicken segment and said "the current beef environment is extremely difficult as well." Tyson's fiscal 2008 outlook for EPS of $0.30 to $0.70 is well below analysts' average forecast of $1.02. Despite the challenging market conditions, CEO Richard L. Bond said Tyson is much stronger and better positioned, and believes its strategies are right for long-term success. Fiscal Q4 revenues rose 6.3% to $6.88B, topping expectations of $6.73B. Full-year sales of $27B set a new record. All four of its operating segments were profitable in Q4. Shares of Tyson Foods lost 2% to $14.75 on Friday and if the pre-market trading level holds, Tyson will be down over 45% since peaking this summer.

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