On the bright side, these challenges are not expected to continue and the company expects market conditions to improve going forward, allowing it to maintain a positive outlook for fiscal year 2020.
Tyson is expected to benefit from a strong portfolio as well as demand and growth in its beef and pork business. The company is also seeing healthy demand for protein products and prepared foods. This trend is likely to help the topline numbers.
Tyson’s quarterly results are also likely to benefit from its acquisitions and partnerships. The Keystone Foods acquisition and the acquisition of the European and Thai operations of BRF SA will contribute to the results. The company also partnered with Brazilian poultry products company Grupo Vibra to expand its footprint in the country.
Also read: Tyson Foods Q3 2019 Earnings Conference Call Transcript
In the third quarter of 2019, Tyson beat earnings estimates but revenues missed expectations. Revenue grew 8% year-over-year to $10.8 billion while adjusted EPS fell 2% to $1.47.
For the full year of 2019, Tyson expects sales of approx. $43 billion. The aforementioned challenges caused the company to revise its EPS guidance to a range of $5.30-5.70 for the year. For fiscal year 2020, Tyson expects sales to grow approx. 6-7% to around $45-46 billion.
Shares of Tyson Foods have gained 54% year-to-date and 32% in the trailing 52 weeks.