Springdale, Arkansas-based Tyson Foods, Inc. (TSN) produces, distributes, and markets chicken, beef, pork, prepared foods, and related allied products. Valued at $21.1 billion by market cap, TSN is one of the world’s largest food companies and its products are marketed and sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies. The global protein leader is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Nov. 12.
Ahead of the event, analysts expect TSN to report a profit of $0.64 per share on a diluted basis, up 73% from $0.37 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect TSN to report EPS of $2.82, up 110.5% from $1.34 in fiscal 2023. Its EPS is expected to rise 15.6% year over year to $3.26 in fiscal 2025.
TSN stock has underperformed the S&P 500’s ($SPX) 38.5% gains over the past 52 weeks, with shares up 27.2% during this period. However, it outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 21.9% gains over the same time frame.
On Sep. 25, TSN shares closed down more than 4% after Piper Sandler downgraded the stock to “Underweight” from “Neutral” with a price target of $50.
On Aug. 5, TSN shares closed up more than 2% after the company reported its Q3 results. Its adjusted EPS of $0.87 topped Wall Street expectations of $0.61. The company’s revenue stood at $13.4 billion, up 1.6% year over year. Its adjusted operating income increased 174.3% from the prior-year quarter to $491 million.
Moreover, the company expects adjusted operating income to be between $1.6 billion and $1.8 billion, while sales are expected to be relatively flat in fiscal 2024 as compared to fiscal 2023. For fiscal 2024, TSN expects capital expenditures to be between $1.2 billion and $1.3 billion.
Analysts’ consensus opinion on TSN stock is cautious, with a “Hold” rating overall. Out of eight analysts covering the stock, two advise a “Strong Buy” rating, five give a “Hold” rating, and one recommends a “Strong Sell.” TSN’s average analyst price target is $60.33, indicating a potential upside of 2.4% from the current levels.
On the date of publication, Neha Panjwani 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.
