Tyson Foods, Inc.TSN offers a wide array of meat products and commands a strong presence in all beef, pork, chicken and processed food products categories.
Continuous product innovations, acquisitions and strong momentum in most of its business segments is driving sales of the company since past many quarters. With a general shift of demand among health conscious consumers from red meat to low-calorie chicken items, Tyson's endeavor on providing meat-based snacks as consumers are avoiding candy and overly processed foods is encouraging. However, Tyson has been witnessing soft top-line numbers because of dismal performance in the beef segment. Higher investments in the Prepared Foods category and hike in wages have pressurized margins. Due to this, investors are eagerly awaiting Tyson's earnings report.
Investors should also note the recent earnings estimate revisions for TSN, as the consensus estimate has been moving downwards over the past 30 days. Moreover, TSN has a mixed history in earnings season. Tyson has delivered positive surprise in three of the last four quarters, with negative surprises in the remaining one, making for an average positive surprise of 6.8%.
Currently, Tyson Foods has a Zacks Rank #2 (Buy), but that could definitely change following Tyson's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Tyson Foods misses on earnings. Our consensus called for EPS of $1.06 per share, and the company reported adjusted EPS of $1.01 per share instead. Investors should note that these figures take out stock option expenses.
Revenue: Tyson Foods posted adjusted revenues of $9.083 billion. This slightly lagged our consensus estimate by $9.100 billion.
Key Stats to Note: The company reiterates its adjusted earnings guidance of $4.90-$5.05 in fiscal 2017, representing a 12% increase from fiscal 2016.
Stock Price: In active in pre-market trading
Check back later for our full write up on this TSN earnings report later!
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report