|11:58 EDT||HSH, JBSAY, PPC, CALM, TSN||Poultry leaders Tyson, Cal-Maine diverge after quarterly reports|
Shares of two leaders in the poultry industry, Tyson Foods (TSN) and Cal-Maine Foods (CALM), are moving in opposite directions following their respective quarterly reports. Tyson, a food production company specializing in chicken and other proteins, were up after the company reported better than expected third quarter revenues, while shares of egg provider Cal-Maine are cracking after the company said it was "cautiously optimistic" about having a good start to full-year 2015. TYSON: Tyson Foods' adjusted Q3 earnings per share was 75c, which fell below analysts' consensus of 78c. The food provider's Q3 revenue was $9.68B, which exceeded analysts' consensus of 9.47B. In terms of guidance, Tyson guided fiscal year 2014 revenue to grow to $38B, compared to analysts' estimates of $36.85B. Tyson expects FY15 EPS growth of at least 10%. Analysts are expecting the company's FY15 EPS to be $3.16. The company sees FY15 revenue of $42B, above the analysts' consensus of $38.75B. Tyson Foods said that it expects fiscal year 2015 domestic protein production to increase 1% and also expects grain supplies to increase during the fiscal year, which should result in lower input costs as well as decreased costs for cattle and hog producers. U.S. chicken production is expected to increase around 2% in FY15 compared to FY14. The company expects lower feed costs for chicken in FY15 and said the Chicken segment's operating margin should be at or above 10% in FY15. Tyson also announced that has reached a definitive agreement with to sell its poultry businesses in Mexico and Brazil to Pilgrim's Pride (PPC), whose majority owner is a wholly owned subsidiary of JBS SA (JBSAY). On its earnings conference call, Tyson backed its FY14 EPS view of "at least" $2.78, versus analysts' estimates of $2.91, and called 2015 earnings guidance "conservative." The company said the Hillshire Brands (HSH) acquisition is on-track to close in Q4 and sees synergies reaching $225M in 2015. CAL-MAINE: Meanwhile, Cal-Maine reported fourth quarter EPS of $1.30, which surpassed the consensus forecast of $1.15 from the two analysts covering the stock, according to First Call. The company's Q4 revenue was $371.6M, which was over $46M higher than the revenue it reported a year ago in the same period. Cal-Maine reported that it produced 195.63M total dozen eggs in Q4 and sold 249.44M total dozen eggs in the quarter. The company said its results reflect strong demand for shell eggs throughout the year from all the major market segments including retail, egg product and exports. Looking ahead to its FY15, Cal-Maine said that it is "cautiously optimistic" about a good start to the upcoming year. The company said current USDA projections for harvested acres and yields for both crops should be favorable for end users and help reduce feed costs in FY15. ANALYST REACTION: Sidoti downgraded Cal-Maine to Neutral from Buy due to valuation. The firm maintained its price target of $87 on the shares. PRICE ACTION: Near midday, shares of Tyson Foods rose $1.70, or 4.3%, to $41.24 and CalMaine foods fell $4.70. or 6%, to $74.59.