Tyson Foods Q4 Profit Rises, But Results Miss View; Names Tom Hayes CEO

(RTTNews) - Tyson Foods, Inc. (TSN) on Monday reported a more than 51 percent increase in profit for the fourth quarter from last year as lower sales were more than offset by a decline in expenses. However, results for the quarter missed analysts' estimates.

The company also said that Tom Hayes, President of Tyson Foods, will succeed Donnie Smith as chief executive officer on December 31, 2016. The company noted that Hayes' record of strategic, operational and commercial accomplishments positions him to lead the company.

Fourth-quarter net income attributable to company was $391 million or $1.03 per share, up from $258 million or $0.63 per share in the same period last year.

Adjusted net income for the quarter was $0.96 per share, compared to $0.83 per share in the year-ago quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter declined to $9.16 billion from $10.51 billion in the previous year. Adjusted sales were $9.16 billion, compared to $9.76 billion last year. Analysts expected revenue of $9.38 billion for the quarter.

Operating income increased 7 percent to $586 million from $550 million a year ago.

Looking ahead to fiscal 2017, the company forecast earnings of $4.70 to $4.85 per share, with reported earnings per share growth of 4 percent to 7 percent, and adjusted earnings per share growth of 7 percent to 10 percent. The Street expects earnings of $4.98 per share for the year on revenues of $36.98 billion.

Tyson Foods said that new CEO Hayes will continue to serve as President and has been appointed to the board of directors, effective immediately. Smith, who has been CEO of Tyson Foods since November 2009, will be available to consult with the company for a three-year period.

Hayes is a 29-year veteran of the consumer products industry. Prior to his role as President, Hayes was chief commercial officer at Tyson Foods, overseeing all North American sales, in addition to the food service prepared foods business. He also previously served as president of food service.

Previously, Hayes served as chief supply chain officer for Hillshire Brands Co.

Smith became CEO of Tyson Foods in November 2009, and has helped to build a platform to support the company's hybrid strategy of branded prepared products and fresh chicken, beef, pork and specialty meats. Hayes was appointed President earlier this year and is leading Tyson Foods' transition to the hybrid model.