Tyson Foods, Inc. (NYSE:TSN) Q4 2018 Earnings Conference Call Transcript
Nov 13, 2018 • 09:00 am ET
Q4, we expect our average diluted shares to be around 367 million before any share repurchases. As Noel said in the news release this morning, based on current assumptions, we believe fiscal 2019 (ph) adjusted earnings will be $5.75 to $6.10 per share. That's comparable to fiscal 2018 results if you exclude the $0.13 in earnings per share generated by the businesses divested in 2018.
Now, some of the assumptions we're making in our guidance are that there is no further movement in the grain markets, the chicken price deterioration ends that we're able to continue recovering increased freight costs through pricing and that there are no extraordinary labor pressures. Although not in our current outlook, we also expect the Keystone acquisition will have financing and integration costs in 2019, as well as recognition of intangible assets, and therefore, we anticipate Keystone's accretion on an adjusted EPS basis to begin in fiscal 2021. However, we expect Keystone as with our other recent acquisitions to be immediately accretive on a cash basis.
2019 is going to be another great year focused on driving growth as we integrate businesses, carry out CapEx projects, drive cost savings and generate cash to create shareholder value.
That concludes my remarks. Now back to Noel.
Thank you, Stewart. 2018 was challenging, but it was a good year. Looking at publicly available data, we are outperforming the competition in all segments. We made three acquisitions and completed four divestitures to better position us for long-term growth. We are actively integrating the new businesses and we're ready to hit the ground running with Keystone. We're excited about the platform for global growth that Keystone will provide in addition to its strong domestic operations.
Based on current assumptions, our outlook for fiscal 2019 is comparable to 2018. We expect another good year, but not without challenges. However, we remain confident in our ability to execute and deliver growth over time, because of our diversified business model, our broad product portfolio, our strong innovation pipeline, our differentiated capabilities, our tremendous financial position and the expertise and experience of our team members. These are advantages in how we will generate growth both organically and through acquisition, both domestically and internationally.
This concludes our prepared remarks. Bill, we're ready to begin Q&A.