Tyson Foods, Inc. (NYSE:TSN) Q2 2017 Earnings Conference Call Transcript

May 08, 2017 • 09:00 am ET

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Tyson Foods, Inc. (NYSE:TSN) Q2 2017 Earnings Conference Call Transcript

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Presentation
Executive
Dennis Leatherby

offset by the impact of lower beef prices.

Adjusted net interest expense should approximate $275 million as a result of the incremental borrowings in our third quarter to fund the AdvancePierre acquisition. We currently estimate our adjusted effective tax rate to be around 34.1%. CapEx is expected to approximate $1 billion, as we focus on capacity expansion and operational improvements that create long-term shareholder value. Based on our average share price in Q2, we expect our average diluted shares to be around 370 million.

During the first half of fiscal 2017, we produced record financial results while making significant investments in CapEx, network optimization, talent, safety and animal well-being that will lay the foundation for sustainable, long-term growth. Despite $23 million of incremental costs related to two chicken plant fires as well as an incremental $72 million investment in our team related to standardizing our benefits and compensation plans, our record results in the first half of fiscal 2017 gives us guidance to reaffirm our annual adjusted EPS guidance range of $4.90 to $5.05.

This range is approximately 12% to 15% over a record fiscal 2016 adjusted EPS and represents a five-year compounded annual growth rate of approximately 20%. In closing, the back half of the year is expected to be strong, and we're excited about the growth opportunities we see in the AdvancePierre acquisition, as we remain focused on investing for the future to deliver shareholder value. This concludes our prepared remarks. Denise, we're ready to begin Q&A.