Tyson Foods, Inc. TSN is likely to register bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Nov. 12. The consensus mark for earnings has remained unchanged in the past 30 days at 64 cents per share, indicating an increase of nearly 73% from the figure reported in the year-ago quarter. TSN has a trailing four-quarter earnings surprise of 49%, on average. The Zacks Consensus Estimate for revenues is pegged at $13.3 billion, implying a 0.2% dip from the prior-year quarter’s reported figure.
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Things to Consider Ahead of TSN’s Upcoming Results
Tyson Foods, like many other global companies, faces ongoing macroeconomic uncertainties that could impact demand for protein products. Volatile currency movements, fluctuating commodity prices and potential slowdowns in consumer spending pose risks to international and domestic operations.
Tyson Foods continues to face significant headwinds in its Beef segment, with elevated cattle costs compressing margins. On its lastearnings call the company stated that it anticipates the cattle cycle to remain challenging. Tyson Foods expects overall sales to remain flat year over year in fiscal 2024. Its adjusted operating income (AOI) guidance for Beef implies an expected loss between $300 million and $400 million for fiscal 2024. These factors raise concerns for the quarter to be reported.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote
However, Tyson Foods’ Chicken segment emerged as a standout performer, delivering $307 million in AOI in the last reported quarter. The company raised its guidance for the Chicken segment, wherein it now envisions an AOI of $850-$950 million for fiscal 2024 compared with the previous view of $700-$900 million. This success is attributed to operational improvements, market tailwinds and strategic investments in value-added products. Tyson Foods’ focus on optimizing the entire value chain in Chicken, from live operations to plant utilization, has driven efficiencies that have bolstered profitability.
The company has been benefiting from its growth strategy, anchored in three key pillars: operational excellence, customer and consumer obsession and sustainability. Operational excellence is achieved through continuous improvement initiatives that enhance productivity and efficiency across all segments, supported by a robust supply-chain optimization strategy. Customer and consumer obsession drives Tyson Foods’ commitment to understanding and responding to evolving consumer preferences.
Gains from these growth drivers are likely to drive results in the quarter under review.
Earnings Whispers for TSN
Our proven model doesn’t conclusively predict an earnings beat for Tyson Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Tyson Foods carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.
CAVA Group, Inc. CAVA currently has an Earnings ESP of +3.38% and a Zacks Rank of 2 at present. The company is likely to register top and bottom-line growth when it reports third-quarter 2024 results. The Zacks Consensus Estimate for CAVA’s quarterly revenues is pegged at $235.1 million, which indicates growth of 33.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CAVA Group’s earnings is pegged at 11 cents per share, indicating 83.3% growth from the year-ago quarter. CAVA has a trailing four-quarter earnings surprise of 257.7%, on average.
Ollie's Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. OLLI's top line is anticipated to increase year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure.
The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago quarter. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.
Jack in the Box Inc. JACK has an Earnings ESP of +1.28% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports fiscal fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for JACK’s quarterly revenues is pegged at $357.9 million, which indicates a dip of 3.9% from the figure reported in the prior-year quarter.
The consensus estimate for Jack in the Box’s quarterly earnings has declined by 2 cents over the past 30 days to $1.12 per share. The figure indicates growth of 2.8% from the year-ago quarter’s number. JACK delivered an average earnings surprise of 1.7% in the trailing four quarters.
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