Tyson Foods (NYSE: TSN) recorded $2.87 first-quarter EPS beating the $1.88 analyst estimate by about $1.01. The company recorded a $12.93 billion revenue in the first quarter beating the $12.09 billion analyst estimate as well. Tyson Foods is the largest food company in the world and the USDA believes domestic protein production will be relatively flat in 2022 compared to 2021.
Tyson Foods tops Q1 consensus earnings estimates
The company’s GAAP EPS increased by 140% to $3.07 from the previous fiscal year. Its adjusted EPS grew by 48%, representing $2.87. The GAAP operating income increased by 106%, to $1.45 million, from the previous fiscal year. On the other hand, adjusted operating income increased by 40% to $1.42 million.
Tyson Foods’ Chief Executive Officer and President, Donnie King said:
We’re pleased with the results of the first quarter and of the steps that we are taking to improve productivity.
The CEO continued to say:
Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.
Beef sales volumes plummeted because of the impacts linked to increased supply chain complications and a challenging work environment. However, average sales prices went up as input costs like transportation, freight, labor and live cattle costs increased. Although, demand for the product remained strong.
The pork sales volumes also increased slightly, but this was largely because the demand was negatively affected by the impacts linked to a harsh labor environment. Average sales prices increased as well as input costs like transportation, freight, labor, and live pigs costs increased.
The sales volume increase with chicken was mainly because of strong demand and an increase in live production. Average sales price went up as well because of an inflationary cost environment. On the other hand, operating income went up because of a higher average sales price and increased sales volume.