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Food Stocks' Earnings Platter for Aug 8: TSN, DF, BETR
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The second-quarter 2016 earnings season (or the quarter ended Jun 30, 2016) is on its last leg with almost 82.8% S&P 500 companies already having reported their quarterly results.
According to analysts, this will likely be the fifth quarter in a row to display a declining trend in earnings. Per the Zacks Earnings Trends report, the quarter so far saw a 4.5% decline in earnings due to a 1% dip in revenues, both on a year-over-year basis.
However, we note a sequential improvement in results. Interestingly, this quarter is seeing positive revenue growth and is currently reversing the trend displayed in the preceding quarter. Almost 70.5% of the companies surpassed earnings estimates and 52.9% outpaced top-line expectations.
Several companies are scheduled to report their financial results this week. Total earnings in the second quarter are expected to be down 3.1% due to 0.4% lower revenues. The second-quarter earnings season is critical for investors to ascertain the most attractive picks as the market has somewhat stabilized after Brexit, which shook the global economy in Jun 2016. Post Brexit, investors became jittery and have been resorting to safe haven stocks. In this scenario, the consumer staples sector might be quite reliable.
So far, the consumer sector has reported modest results this quarter. Lower gas prices, an improving job scenario and increasing consumer confidence have been supporting the improvement in results.
In the consumer staples sector, 71.0% companies had reported second-quarter earnings as of Aug 5. Out of these, 72.7% of the companies have posted an earnings beat, while 50% have surpassed revenue estimates.
Food stocks are particularly doing well in the second quarter. Leading firms from the industry like The Hershey’s Company HSY, Pinnacle Foods, Inc. (PF), B&G Foods, Inc. BGS, Colgate-Palmolive Co. CL, Mondelez International, Inc. MDLZ are among the ones that delivered stellar second-quarter earnings despite currency headwinds and sluggishness in emerging markets.
With more and more companies slated to report their quarterly numbers soon, let’s take a look at how these three food stocks are placed ahead of the release of their financial results on Aug 8.
Tyson Foods is set to report third-quarter fiscal 2016 results on Aug 8, before market opens. The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increase the predictive power of an earnings beat, a 0.00% Earnings ESP complicates our surprise prediction. Last quarter, the company posted a positive earnings surprise of 11.46%. The company beat estimates in two of the last four quarters with an average positive surprise of 5.02%.
The Zacks Consensus Estimate for the fiscal third quarter earnings is pegged at $1.07 per share.
Tyson Foods’ regular product innovations and strong growth across most business lines have been driving sales for quite some time now.
Further, the general shift of health conscious consumers from red meat to low-calorie chicken and processed chicken products is increasing the demand for the company’s products, thereby driving sales in its Chicken segment. Such factors should have a favorable impact on the fiscal third-quarter results. However, soft consumer spending and difficulties in emerging markets remain concerns. (Read: Tyson Foods to Report Q3 Earnings: What's in Store?)
Dean Foods Company
We expect leading retail farm and ranch store chain, Dean Foods to beat expectations when it reports second-quarter 2016 results on Aug 8. This is because the company has an Earnings ESP of +2.56% and sports a Zacks Rank #1, which is a very meaningful and a leading indicator of a likely positive earnings surprise. Last quarter, the company had delivered a positive earnings surprise of 18.4%. In fact, the bottom line has outperformed the Zacks Consensus Estimate for four straight quarters now witha an average positive surprise of 5.02%.
Dean Foods remains focused on its key strategic measures and concentrates on three controllable factors – price realization, cost productivity and creating a balance between pricing and volumes. These should aid it in delivering appropriate returns even in the face of industry headwinds. Management remains pleased with its progress, given Dean Foods’ solid operational and financial results in the previous quarter that strengthened its balance sheet even further. The Zacks Consensus Estimate for the second quarter is pegged at 39 cents per share. (Read: Dean Foods Q2 Earnings: Stock to Top Estimates Again?)
This food company is set to report second-quarter results on Aug 8. The company carries a Zacks Rank #3 but has an Earnings ESP of 0.00%. It reported a negative earnings surprise of 7.14% in the preceding quarter but an average positive surprise of 15.46% for the trailing four quarters. The Zacks Consensus Estimate for earnings is currently pegged at 15 cents per share for the second quarter.
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
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Food Stocks' Earnings Platter for Aug 8: TSN, DF, BETR
The second-quarter 2016 earnings season (or the quarter ended Jun 30, 2016) is on its last leg with almost 82.8% S&P 500 companies already having reported their quarterly results.
According to analysts, this will likely be the fifth quarter in a row to display a declining trend in earnings. Per the Zacks Earnings Trends report, the quarter so far saw a 4.5% decline in earnings due to a 1% dip in revenues, both on a year-over-year basis.
However, we note a sequential improvement in results. Interestingly, this quarter is seeing positive revenue growth and is currently reversing the trend displayed in the preceding quarter. Almost 70.5% of the companies surpassed earnings estimates and 52.9% outpaced top-line expectations.
Several companies are scheduled to report their financial results this week. Total earnings in the second quarter are expected to be down 3.1% due to 0.4% lower revenues. The second-quarter earnings season is critical for investors to ascertain the most attractive picks as the market has somewhat stabilized after Brexit, which shook the global economy in Jun 2016. Post Brexit, investors became jittery and have been resorting to safe haven stocks. In this scenario, the consumer staples sector might be quite reliable.
So far, the consumer sector has reported modest results this quarter. Lower gas prices, an improving job scenario and increasing consumer confidence have been supporting the improvement in results.
In the consumer staples sector, 71.0% companies had reported second-quarter earnings as of Aug 5. Out of these, 72.7% of the companies have posted an earnings beat, while 50% have surpassed revenue estimates.
Food stocks are particularly doing well in the second quarter. Leading firms from the industry like The Hershey’s Company HSY, Pinnacle Foods, Inc. (PF), B&G Foods, Inc. BGS, Colgate-Palmolive Co. CL, Mondelez International, Inc. MDLZ are among the ones that delivered stellar second-quarter earnings despite currency headwinds and sluggishness in emerging markets.
With more and more companies slated to report their quarterly numbers soon, let’s take a look at how these three food stocks are placed ahead of the release of their financial results on Aug 8.
Tyson Foods Inc. (TSN - Free Report)
Tyson Foods is set to report third-quarter fiscal 2016 results on Aug 8, before market opens. The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increase the predictive power of an earnings beat, a 0.00% Earnings ESP complicates our surprise prediction. Last quarter, the company posted a positive earnings surprise of 11.46%. The company beat estimates in two of the last four quarters with an average positive surprise of 5.02%.
The Zacks Consensus Estimate for the fiscal third quarter earnings is pegged at $1.07 per share.
TYSON FOODS A Price and EPS Surprise
TYSON FOODS A Price and EPS Surprise | TYSON FOODS A Quote
Tyson Foods’ regular product innovations and strong growth across most business lines have been driving sales for quite some time now.
Further, the general shift of health conscious consumers from red meat to low-calorie chicken and processed chicken products is increasing the demand for the company’s products, thereby driving sales in its Chicken segment. Such factors should have a favorable impact on the fiscal third-quarter results. However, soft consumer spending and difficulties in emerging markets remain concerns. (Read: Tyson Foods to Report Q3 Earnings: What's in Store?)
Dean Foods Company
We expect leading retail farm and ranch store chain, Dean Foods to beat expectations when it reports second-quarter 2016 results on Aug 8. This is because the company has an Earnings ESP of +2.56% and sports a Zacks Rank #1, which is a very meaningful and a leading indicator of a likely positive earnings surprise. Last quarter, the company had delivered a positive earnings surprise of 18.4%. In fact, the bottom line has outperformed the Zacks Consensus Estimate for four straight quarters now witha an average positive surprise of 5.02%.
DEAN FOODS CO Price and EPS Surprise
DEAN FOODS CO Price and EPS Surprise | DEAN FOODS CO Quote
Dean Foods remains focused on its key strategic measures and concentrates on three controllable factors – price realization, cost productivity and creating a balance between pricing and volumes. These should aid it in delivering appropriate returns even in the face of industry headwinds. Management remains pleased with its progress, given Dean Foods’ solid operational and financial results in the previous quarter that strengthened its balance sheet even further. The Zacks Consensus Estimate for the second quarter is pegged at 39 cents per share. (Read: Dean Foods Q2 Earnings: Stock to Top Estimates Again?)
Amplify Snack Brands, Inc. (BETR - Free Report)
This food company is set to report second-quarter results on Aug 8. The company carries a Zacks Rank #3 but has an Earnings ESP of 0.00%. It reported a negative earnings surprise of 7.14% in the preceding quarter but an average positive surprise of 15.46% for the trailing four quarters. The Zacks Consensus Estimate for earnings is currently pegged at 15 cents per share for the second quarter.
AMPLIFY SNACK Price and EPS Surprise
AMPLIFY SNACK Price and EPS Surprise | AMPLIFY SNACK Quote
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
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 >>