=Tyson Foods (TSN) reported earnings on Mon 8 May 2017 (b/o)

Tyson Foods misses by $0.01, reports revs in-line; reaffirms FY17 EPS guidance:

• Reports Q2 (Mar) earnings of $1.01 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $1.02; revenues fell 0.9% year/year to $9.08 bln vs the $9.07 bln Capital IQ Consensus; adj. operating income +8% to $1.6 bln.
• Co reaffirms guidance for FY17, sees EPS of $4.90-5.05, excluding non-recurring items, vs. $5.02 Capital IQ Consensus Estimate. 
• In fiscal 2017, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase ~3-4% from fiscal 2016 levels, but strong export markets should partially offset the increase. As we continue with the integration of Hillshire Brands, we expect to realize synergies of around $675 million in fiscal 2017 from the acquisition as well as our profit improvement plan for our legacy Prepared Foods business with some incremental synergies expected to be realized in fiscal 2018. The majority of these benefits will be realized in our Prepared Foods segment.
• "Our Beef and Pork segments generated tremendous operating income in the second quarter, allowing us to invest in the long-term growth of our value-added businesses. Our Prepared Foods segment results were negatively affected by the on-going challenges in our pizza toppings and ingredients meats businesses discussed last quarter. We expect our results to improve as we continue to address operational efficiency and capacity through fiscal year 2018. Unfortunately, we experienced fires in two chicken plants in our second quarter. Had it not been for the fires, our Chicken segment return on sales would have been within its normalized range."