November 19, 2013

Tyson Food's fiscal fourth-quarter net income soared 41%, driven by higher beef and chicken sales, which prompted a 50% spike in the company's dividend.

Tyson also provided a fiscal 2014 revenue forecast above analysts' estimates, and its stock rose in premarket trading. It earned US$261 million, or US$0.70/share, for the period ended September 28. Last year, the Springdale, Ark. company earned US$185 million, or US$0.51/share.

Revenue increased 7% to US$8.89 billion from US$8.32 billion. Wall Street predicted revenue of US$8.85 billion.

Chicken sales rose to US$3.16 billion from US$2.96 billion, while beef sales climbed to US$3.75 billion from US$3.43 billion. Average sales prices increased for chicken, beef, pork and prepared foods.

For the fiscal year, Tyson earned US$778 million, or US$2.12/share, up 33% from US$583 million, or US$1.58/share, last year. Adjusted earnings from continuing operations were US$2.26/share compared with adjusted earnings of US$1.97/share in the 2012 fiscal year. Annual revenue climbed 4% to US$34.37 billion from US$33.06 billion.

Tyson anticipates fiscal 2014 revenue of about US$36 billion. Analysts expect US$35.64 billion in revenue. The company also said that its board decided to raise its quarterly dividend by 50% to US$0.075, from US$0.05. The dividend will be paid on December 13 to shareholders of record on November 29.

Moreover, Tyson said that Chief Operating Officer Jim Lochner will retire in September 2014. He's served as the company's COO since 2009. Once he retires Lochner will serve as an adviser through 2017's end.

Shares of Tyson Foods gained US$1.13, or 3.9%, to US$39.90 before the market open.