Tyson Foods Set to Announce Q1 Earnings: What Analysts Expect
Company Overview
Tyson Foods, Inc. (TSN), based in Springdale, Arkansas, stands as a significant player in the global protein market. With a market cap of $19.8 billion, it plays a key role in satisfying the increasing global demand for nutritious food products. Investors are keenly awaiting the company’s Q1 earnings report, which is scheduled for Wednesday, Feb. 3, before markets open.
Analysts’ Predictions
Before the earnings call, experts predict that Tyson Foods will show a profit of $0.78 per share, reflecting a 13% increase from the previous year’s $0.69. The company has consistently outperformed Wall Street’s adjusted EPS estimates over the last four quarters.
In the previous quarter, Tyson posted an EPS of $0.92, exceeding forecasts by 43.8%. This increase was attributed to higher pricing, improved profitability, and operational efficiencies, which all contributed to a year-over-year growth in EPS.
Comparative Stock Performance
Recently, TSN stock has not performed as well as the S&P 500 Index ($SPX), which gained 24.2% in the past year, while TSN increased by merely 1%. The stock has also lagged behind the Consumer Staples Select Sector SPDR Fund (XLP), which saw a 6.7% rise during the same period.
Challenges Facing Tyson Foods
Tyson Foods has encountered several challenges, including high cattle costs, operational difficulties, plant closures, leadership changes, and competition. Nevertheless, on Nov. 12, following its Q4 earnings report, shares jumped over 6%. The company reported revenues of $13.6 billion, a 1.6% year-over-year increase, and an adjusted operating margin of 3.8%.
Future Outlook
Looking towards fiscal 2025, the USDA predicts a rise in domestic protein production, while Tyson estimates its adjusted operating income will fall between $1.8 billion and $2.2 billion. Revenue may either remain flat or see a decline of up to 1%, with capital expenditures expected to range from $1 billion to $1.2 billion, focusing on maintenance and investments aimed at profit enhancement.
Analyst Consensus and Recommendations
The overall consensus on Tyson Foods stock remains cautious, with analysts issuing a “Hold” rating. Of the eight analysts evaluating the stock, two recommend a “Strong Buy,” five suggest a “Hold,” while one advises a “Strong Sell.” The average target price for TSN stands at $63.78, indicating a potential upside of 15% from current prices.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
