Tyson Foods, Inc. (TSN), headquartered in Springdale, Arkansas, is a global leader in protein production, providing innovative and sustainable food solutions to customers worldwide. With a market cap of $19.8 billion, Tyson is crucial in meeting the growing demand for high-quality, nutritious food products. Tyson Foods is set to report its Q1 earnings before the market opens on Wednesday, Feb. 3.
Ahead of the event, analysts expect Tyson Foods to report a profit of $0.78 per share, up 13% from $0.69 in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters.
In Q4, the company reported an EPS of $0.92, which topped the consensus estimates by 43.8%. Tyson Foods' earnings beat was driven by higher pricing, improved profitability, and operational efficiencies, leading to a year-over-year increase in EPS.
For fiscal 2025, analysts expect Tyson Foods to report an adjusted EPS of $3.51, up 13.2% from $3.10 in fiscal 2024.
TSN stock has underperformed compared to the S&P 500 Index ($SPX), which gained 24.2% over the past 52 weeks, with TSN rising only 1% during this period. Additionally, it lagged behind the Consumer Staples Select Sector SPDR Fund (XLP), which rallied of 6.7% over the same timeframe.
Tyson Foods has faced underperformance due to high cattle costs, operational challenges, plant closures, leadership instability, and competitive pressures. However, on Nov. 12, Tyson Foods’ shares surged over 6% following its Q4 earnings report. The company posted revenue of $13.6 billion, up 1.6% year-over-year. Also, it reported a total adjusted operating margin of 3.8%.
Looking ahead to fiscal 2025, the USDA anticipates increased domestic protein production, while Tyson projects an adjusted operating income between $1.8 billion and $2.2 billion. Revenue is expected to remain flat or decline by up to 1%, with capital expenditures forecasted between $1 billion and $1.2 billion, driven by maintenance and profit-enhancing investments.
Analysts’ consensus opinion on Tyson Foods 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 $63.78, indicating a potential upside of 15% from the current levels.
