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Factors You Must Know Ahead of Tyson Foods (TSN) Q1 Earnings
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Tyson Foods, Inc. (TSN - Free Report) is slated to report first-quarter fiscal 2018 results on Feb 8, before the opening bell.
The question lingering in investors’ minds is, whether this major food company will be able to pull off a positive earnings surprise in the to-be-reported quarter. The company’s earnings have outpaced the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 6%.
Let’s now take a look at how things are shaping up for this announcement.
Factors Likely to Influence This Quarter
Tyson Foods has been benefiting from its strategic buyouts, focus on protein-packed brands and nutritious products as well as significant geographical foothold. Impressively, the company witnessed major sales from the markets of Canada, Central America, China, the European Union, Japan, Mexico, Middle East, South Korea and Taiwan. Also, the company’s focus on strengthening protein-packed brands portfolio is noteworthy. This is apparent from the recent investment in the food-tech startup, Memphis Meats, which is anticipated to expand Tyson Foods’ protein-rich offerings.
Last quarter, management announced a Financial Fitness Program that is expected to enhance operating efficiency in the forthcoming periods. In fiscal 2018, the company plans to test line-up of meal kits and add more products to Hillshire snacking. All these initiatives are likely to drive growth in the first quarter.
As a result, Tyson Foods’ shares have gained 18% in a year, rallying ahead of the industry’s growth of 13.7%.
Meanwhile, we expect Tyson Foods to continue gaining from rise in demand at the chicken and the beef segments. Also, the company’s prepared foods category has been depicting solid growth owing to rising demand for protein-packed brands and synergies from the AdvancePierre’s buyout. Encouragingly, the Zacks Consensus Estimate for sales at the chicken and the beef segments are currently pegged at $2,876 million and $3,671 million, respectively, up 6.3% and 4.1% year over year. Further, the consensus estimate for sales of $2,109 million from the prepared foods division is likely to witness growth of 11.3%. Similarly, the sales estimate of $1,284 million for the company’s Pork segment also depicts an improvement of 2.6% from the prior-year quarter.
These estimates have aided the consensus estimate for the company’s total sales to witness an increase of 7.7% year over year, which is pegged at $9,892 million.
However, the company’s earnings estimate of $1.51 for the fiscal first quarter has decreased by a penny in the last 30 days, alongside depicting a year-over-year decline of roughly 5% from the year-ago period. This might be due to the company’s exposure to the risk of raw material price volatility. Also, stiff competition and intense promotions remain headwinds. Rising wage costs also pose threats to Tyson Foods’ operating results.
What Does The Zacks Model Unveil?
Our proven model does not show that Tyson Foods is likely to beat earnings estimates this quarter. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods has an Earnings ESP of -0.17%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP but a negative ESP makes our surprise prediction difficult.
Stocks With Favorable Combinations
Here are some companies which, according to our model, have the right combination of elements to deliver earnings beat.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 2.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Factors You Must Know Ahead of Tyson Foods (TSN) Q1 Earnings
Tyson Foods, Inc. (TSN - Free Report) is slated to report first-quarter fiscal 2018 results on Feb 8, before the opening bell.
The question lingering in investors’ minds is, whether this major food company will be able to pull off a positive earnings surprise in the to-be-reported quarter. The company’s earnings have outpaced the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 6%.
Let’s now take a look at how things are shaping up for this announcement.
Factors Likely to Influence This Quarter
Tyson Foods has been benefiting from its strategic buyouts, focus on protein-packed brands and nutritious products as well as significant geographical foothold. Impressively, the company witnessed major sales from the markets of Canada, Central America, China, the European Union, Japan, Mexico, Middle East, South Korea and Taiwan. Also, the company’s focus on strengthening protein-packed brands portfolio is noteworthy. This is apparent from the recent investment in the food-tech startup, Memphis Meats, which is anticipated to expand Tyson Foods’ protein-rich offerings.
Last quarter, management announced a Financial Fitness Program that is expected to enhance operating efficiency in the forthcoming periods. In fiscal 2018, the company plans to test line-up of meal kits and add more products to Hillshire snacking. All these initiatives are likely to drive growth in the first quarter.
As a result, Tyson Foods’ shares have gained 18% in a year, rallying ahead of the industry’s growth of 13.7%.
Meanwhile, we expect Tyson Foods to continue gaining from rise in demand at the chicken and the beef segments. Also, the company’s prepared foods category has been depicting solid growth owing to rising demand for protein-packed brands and synergies from the AdvancePierre’s buyout. Encouragingly, the Zacks Consensus Estimate for sales at the chicken and the beef segments are currently pegged at $2,876 million and $3,671 million, respectively, up 6.3% and 4.1% year over year. Further, the consensus estimate for sales of $2,109 million from the prepared foods division is likely to witness growth of 11.3%. Similarly, the sales estimate of $1,284 million for the company’s Pork segment also depicts an improvement of 2.6% from the prior-year quarter.
These estimates have aided the consensus estimate for the company’s total sales to witness an increase of 7.7% year over year, which is pegged at $9,892 million.
However, the company’s earnings estimate of $1.51 for the fiscal first quarter has decreased by a penny in the last 30 days, alongside depicting a year-over-year decline of roughly 5% from the year-ago period. This might be due to the company’s exposure to the risk of raw material price volatility. Also, stiff competition and intense promotions remain headwinds. Rising wage costs also pose threats to Tyson Foods’ operating results.
What Does The Zacks Model Unveil?
Our proven model does not show that Tyson Foods is likely to beat earnings estimates this quarter. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. Price, Consensus and EPS Surprise | Tyson Foods, Inc. Quote
Tyson Foods has an Earnings ESP of -0.17%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP but a negative ESP makes our surprise prediction difficult.
Stocks With Favorable Combinations
Here are some companies which, according to our model, have the right combination of elements to deliver earnings beat.
United Natural Foods, Inc. (UNFI - Free Report) has an Earnings ESP of +5.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 2.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>