Tyson Foods, Inc. (TSN), headquartered in Springdale, Arkansas, is a global food company and a recognized leader in protein. Valued at $21.25 billion by market cap, the company produces, distributes, and markets chicken, beef, pork, and prepared foods. Its products are marketed and sold under brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp, and State Fair. The U.S. meat major is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Monday, Aug. 5.
Ahead of the event, analysts expect TSN to report a profit of $0.61 per share on a diluted basis, up 306.7% from $0.15 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. During the previous quarter, TSN’s beef segment, which happens to be its largest, grew for the first time in five years, registering a 2.8% year-over-year rise in volume.
For fiscal 2024, analysts expect TSN to report EPS of $2.61, up 94.8% from $1.34 in fiscal 2023.
TSN stock has underperformed the S&P 500’s ($SPX) 16.7% gains on a YTD basis, with shares up 12.1% during this period. However, it outshined the S&P 500 Cons Disc Sector SPDR’s (XLY) 6.2% gains over the same time frame.
On May 6, TSN shares fell over 5% after the company reported its Q2 results. Its sales of $13.07 billion fell short of the consensus estimates of $13.15 billion. The company’s adjusted EPS was $0.62, beating Wall Street estimates of $0.35. Its chicken segment sales fell 8.2% year over year to $4.07 billion, and its volumes declined 6.1% over the prior-year quarter. TSN has faced slowing demand over the past few quarters as price-sensitive customers have cut back on expensive purchases amid persistent inflation. It is also facing challenges related to tight cattle supplies.
Since the beginning of last year, TSN has shut down six U.S. chicken plants, sacked corporate employees, and announced plans to close a pork plant to control costs. For fiscal 2024, TSN expects sales to be relatively flat compared to fiscal 2023 and adjusted operating income between $1.4 billion and $1.8 billion.
Analysts’ consensus opinion on TSN stock is bullish, with a “Moderate Buy” rating overall. Out of eight analysts covering the stock, two advise a “Strong Buy” rating, and six recommend a “Hold.” The average analyst price target for TSN is $60.44, indicating a marginal potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
