Meat company Tyson Foods (NYSE:TSN) will be reporting results tomorrow before market open. Here’s what investors should know.
Tyson Foods beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $13.57 billion, up 1.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
Is Tyson Foods a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tyson Foods’s revenue to grow 1.3% year on year to $13.49 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tyson Foods has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Tyson Foods’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cal-Maine delivered year-on-year revenue growth of 82.5%, beating analysts’ expectations by 27%, and Church & Dwight reported revenues up 3.5%, topping estimates by 1.1%. Cal-Maine’s stock price was unchanged following the results.
Read our full analysis of Cal-Maine’s results here and Church & Dwight’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.1% on average over the last month. Tyson Foods’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $65.93 (compared to the current share price of $56.60).
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