News & Analysis
News & Analysis

Tyson Foods & Skyworks Earnings Reports

5 May 2020 By GO Markets

Share

Tyson Foods & Skyworks Earnings Reports

Tyson Foods and Skyworks are among the two major earnings results released on Monday. The meat processor reported its quarterly results before the open while Skyworks Solutions issued its reports after market close. 

Tyson Foods, Inc. (NYSE: TSN)

Tyson Foods is one of the largest processors and marketer of chicken beef and pork. The company is considered as one of the world’s largest food companies and a leader in protein. The lockdown measures have seen temporary plant closures, reduced, member attendance, and supply chain volatility, which have forced the company to adjust its product mix and redirect products accordingly.

Second Quarter Highlights:

  • GAAP EPS of $1.00, down 15% from the prior year; Adjusted EPS of $0.77, down 36% from the prior year
  • GAAP and Adjusted operating income of $501 million
  • Total Company GAAP and adjusted operating margin of 4.6%
  • Record total Company sales of $10,888 million
  • Secured $1.5 billion term loan facility

Tyson Foods has welcomed the actions of the government to strengthen the food supply chain and prioritising support for meat and poultry processors last week, but the company is still anticipating to operate under multiple challenges related to the pandemic which is expected to drive operating costs higher and negatively impact volumes for the remainder of fiscal year 2020.

Given the uncertainty, the Company withdrew its annual guidance and warned of shortages of protein in grocery stores across the US, mainly due to the closures of facilities and a lack of workers. Also, almost 900 employees at a processing plant in Indiana were tested positive for COVID-19. Amid a gloomy outlook for the meat market, the shortages have driven prices of protein like pork and beef higher.


Source: Bloomberg

The company’s share price which has remained quite resilient in the month of April tumbled by almost 8% on Monday to $55.32.

Skyworks Solutions, Inc. (Nasdaq: SWKS) 

The semiconductors manufacturer is an innovator of high-performance analog semiconductors connecting people, pace and things. The company’s wireless technologies are playing a key role as the world goes remote. 

  • Leveraged our Sky5® platform across flagship 5G handset launches at Samsung, Oppo, Vivo, Xiaomi and other Tier-1 players
  • Expanded our technology reach across our customized Diversity Receive platforms, with new 5G-centric solutions being deployed across a growing set of customers
  • Ramped wireless remote patient monitoring systems with GE
  • Extended our market leadership in Wi-Fi 6 home and enterprise-grade gateways at Cisco
  • Enabled home security systems at Honeywell
  • Accelerated content across multiple automotive leaders including Volkswagen, Renault, Hyundai and Nissan
  • Launched asset tracking and fleet management solutions at Juniper and Blackberry
  • Powered 5G mobile hotspots with Verizon and AT&T, supporting work-from-home trends
  • Supported 5G Massive MIMO and small cell base station deployments across the U.S., Europe and Japan

The company reported earnings of $1.34 per share on revenue of $766m which came above estimates. However, Skyworks provided a weaker guidance outlook for its third quarter between $670m and $710m in revenue. Its share price struggled to find a firm direction in after-hours trading.

Walt Disney, Activision Blizzard, and Beyond Meat are among the few that are expected to report earnings on Tuesday. After the warnings of shortages by the meat giant, Tyson Foods, Beyond Meat will be on investors’ watchlist.

About GO Markets

GO Markets was established in Australia in 2006 as a provider of online CFD trading services. For over a decade, we have positioned ourselves as a firmly trusted and leading global regulated CFD provider. Traders can access hundreds of CFD instruments including Forex, Shares, Indices and Commodities.

Follow us on Twitter, Facebook and LinkedIn to stay up to date with the latest market news and analysis.

Ready to start trading?

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.