Tyson Foods (NYSE:TSN) posted its fourth quarter earnings for 2014 before marked started trading on November 10th, Monday. It made 0.87 dollars earnings per share on top of revenue of 10.11 billion dollars. A year ago, at the same time, Tyson Foods (NYSE:TSN) reported 0.70 dollars earnings per share and generated revenue of 8.89 billion. The market estimate for Tyson Foods (NYSE:TSN)’s fourth quarter was 0.76 EPS on 10.16 billion revenues.
Annual Report revealed that Tyson Foods (NYSE:TSN) made 2.94 dollar earnings per share on top of 37.58 billion revenues. This was far better than last year’s 2.26 earnings per share on 34.37 billion revenues. Tyson Foods (NYSE:TSN)’s revenue is on course; even though it is coming a bit short but it’s still in sync with the outlook the company gave at the end of the third quarter for 38 billion dollars. There was also a surge in the adjusted operating income in the food division for the fourth quarter.
Adjusted operating income went up by 4.8 percent in the fourth quarter and 4.4 percent for the whole year. Tyson Foods (NYSE:TSN) expects production of domestic chicken, beef, and pork costs to rise by 1 percent during the next year. Similarly grain supplies will be higher next year, pushing down input costs along with the cost for cattle producers. Tyson Foods Inc. (NYSE:TSN) expects that its chicken production will easily meet the chicken demand in the next year, which is to rise by 3 to 4 percent.
Tyson Foods Inc. (NYSE:TSN) will also be upgrading its chicken production by 3-4 percent to meet the demand. This would result in profit as high as 10 percent. Beef production will be low, as compared to the current production, perhaps as low as 4-5 percent. Tyson Foods Inc. (NYSE:TSN) will also be increasing the hog production, considering the anticipated inflation in the next year. Tyson Foods Inc. (NYSE:TSN) will enhance hog production by 2-3 percent which will result in an adjusted margin of 6 to 8 percent.
Tyson Foods Inc. (NYSE:TSN)’s acquisition deal with Hillshire closed in August and now the company is expecting a surge worth 4 million in the next year, along with profits worth 225 million. Tyson Foods Inc. (NYSE:TSN) is expecting its sales to reach 42 billion in the next year, currently below the market estimate of 42.51 billion. EPS, according to estimates, should be somewhere between 3.30 to 3.40 dollars. The company also increased its quarterly dividends from 0.075 to 0.10 per share.
Tyson Foods (NYSE:TSN) has had a great year, financially speaking. Generating a lot of revenue and profits is always a good sign of credibility, especially to the investors. The forecast for next year looks great too, despite the expected price hike. But that wouldn’t keep Tyson Foods (NYSE:TSN) from posting great numbers. The revenue for the fourth quarter fell slightly behind the market estimate, but that’s all going to be worked out once the next season commences.