Tyson Foods (TSN 69.34, +3.89) has spiked 5.9% after boosting its guidance for fiscal year 2018. Today's early gain has helped the stock extend its 2017 advance to 12.4%.
The food company announced that stronger than expected performance from its Beef segment prompted an increase to its guidance range for fiscal year 2017. The company now expects that earnings for the full year will be between $5.20 and $5.30 per share, up from previous guidance for earnings between $4.95 and $5.05 per share. Tyson's fiscal year ends on Saturday.
Besides boosting its guidance, Tyson provided an update on its restructuring efforts. The company plans to fire about 450 employees from different areas and job levels. The fourth quarter earnings report is expected to show restructuring charges between $140 million and $150 million. This amount will include $70 million of impairment for costs related to in-process software implementations, between $45 million and $50 million in employee termination costs, and contract termination costs between $25 million and $30 million.
Tyson will report its fourth quarter and full-year earnings on November 13.
Looking ahead, the company expects that earnings for fiscal year 2018 will be between $5.70 and $5.85 per share, which would represent the seventh consecutive year of record earnings.