Tyson Foods (NYSE: TSN) reported Q2 EPS of $1.27, $0.05 worse than the analyst estimate of $1.32. Revenue for the quarter came in at $9.77 billion versus the consensus estimate of $9.83 billion.

First Six Months Highlights

• Record GAAP EPS of $5.25, up 109% from last year; Record Adjusted EPS of $3.08, up 18% from last year
• GAAP operating income of $1,425 million, down 8% from last year; Record Adjusted operating income of $1,644 million up 2% from last year
• Total Company GAAP operating margin of 7.1%; Adjusted operating margin of 8.2%
• Realized $102 million of Financial Fitness Program cost savings

Second Quarter Highlights

• GAAP EPS of $0.85, down 8% from last year; Adjusted EPS of $1.27, up 26% from last year
• GAAP operating income of $498 million, down 13% from last year; Adjusted operating income of $694 million, up 11% from last year
• Realized $65 million of Financial Fitness Program cost savings

Tax Reform Impact

Lower enacted tax rates positively impacted the second quarter and six months Adjusted EPS by $0.17 and $0.38, respectively, and we expect a fiscal 2018 benefit of approximately $0.85 on an adjusted basis

Guidance

Including the benefit of lower enacted tax rates, Adjusted1 EPS guidance for fiscal 2018 is $6.55-$6.70, which represents an approximate 23-26% increase from fiscal 2017 Adjusted EPS

GUIDANCE:

Tyson Foods sees FY2018 EPS of $6.55-$6.70, versus the consensus of $6.62.

For earnings history and earnings-related data on Tyson Foods (TSN) click here.