Tyson Foods, Inc.
) reached a 52-week high of $33.50 on Wednesday, Dec 4, 2013.
Tyson's share price has been rising ever since it reported solid
fourth quarter and full year 2013 earnings and provided a
positive 2014 outlook. Moreover, the company has also doubled its
quarterly dividend in the same month.
The closing price of this meat processing company on Dec 4 was
$33.36, yielding a year-to-date return of 68.4%.
Share Price Drivers
Tyson Foods reported solid earnings and revenue increase in the
fourth quarter 2013. Adjusted earnings of 70 cents grew 22.8%
year-over-year on the back of strong sales growth and lower share
count due to significant share buybacks in the quarter.
Adjusted earnings for the quarter beat the Zacks Consensus
Estimate of 69 cents by a penny. Net sales shot up 7% to $8.9
billion in the quarter, due to sales growth in most of the
business segments. Sales were in line with the Zacks Consensus
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Fiscal 2013 adjusted earnings (excluding impairment charges and
currency translation gains) of $2.26 per share beat the
prior-year quarter earnings of $1.97 by 14.7%. Full year earnings
beat the Zacks Consensus Estimate of $2.23 by 1.3%. Net sales
increased 4.4% to $34.4 billion in the year 2013, due to sales
growth in Chicken and Beef segments. Sales were in line with the
Zacks Consensus Estimate.
Tyson maintained its fiscal 2014 sales guidance of $36 billion,
which reflects its strategy to drive growth in domestic
value-added chicken sales, prepared food sales and international
On Nov 14, 2013, Tyson hiked its quarterly dividend by 50.0% to
75 cents per share payable on Dec 13, 2013, to shareholders of
record as of Nov 29, 2013.
Tyson carries a Zacks Rank #3 (Hold). Better-ranked food
Mead Johnson Nutrition Co.
Hormel Foods Corp.
Pinnacle Foods Inc.
). All the companies carry a Zacks Rank #2 (Buy).