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Tyson Foods (TSN) Misses on Earnings and Revenue Estimates

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 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 and processed chicken food items, Tyson's endeavor to offer low-calorie protein foods like NatureRaised Farms brand is encouraging. However, Tyson has been witnessing soft top-line numbers because of dismal performance in the beef segment. Lower cattle supply and higher fed cattle costs have been responsible for the sluggishness in the segment over the past few quarters. 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 slightly lower 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 1.72%.

Currently, Tyson Foods has a Zacks Rank #3 (Hold), 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 90 cents, and the company reported adjusted EPS of 83 cents per share instead. Investors should note that these figures take out stock option expenses.

Revenue: Tyson Foods posted adjusted revenues of $9.756 billion. This slightly lagged our consensus estimate by $9.772 billion.

Key Stats to Note: Adjusted sales declined 0.2%, as 1.3% volume gains were offset by price decline of 1.5%. Adjusted operating margin increased 100 basis points, significantly driven by chicken segment.

Check back later for our full write up on this TSN earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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