We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
A challenging operating environment has landed TSN as a Zacks Rank #5 (Strong Sell).
Mixed quarterly results and weak guidance have led to weak share performance over recent months.
Volatile cattle prices have heavily impacted its beef business.
Tyson Foods (TSN - Free Report) is the largest U.S. chicken company and produces, distributes, and markets chicken, beef, pork, and prepared foods. The company's products are marketed and sold primarily by sales staff to grocery retailers, grocery wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, international export companies, and domestic distributors.
Earnings revisions have been trending downward, landing the stock as a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Recent Quarterly Results
Tyson’s latest quarterly results were mixed, with adjusted earnings of $0.99 per share climbing 9% YoY but falling short of the Zacks Consensus estimate. Sales of $13.9 billion were essentially flat from the same period last year and similarly came in below expectations.
Image Source: Zacks Investment Research
TSN’s Beef segment remains the biggest concern, weighed down by tight cattle supplies and elevated cattle costs. Beef sales fell to $5.4 billion in its latest quarter despite a 12% increase in average prices, with volumes sinking nearly 16% YoY.
While strength in Chicken and Prepared Foods has helped offset some of the weakness, TSN recently lowered its FY26 outlook, now expecting revenue growth of 1.5% - 2% and adjusted operating income of $1.85 - $2.05 billion. The updated guidance reflects significant margin compression from volatile cattle prices, with Tyson calling the environment one of the most severe cattle shortages in U.S. history.
Shares reacted negatively to the above-mentioned results and similarly came under further pressure following the updated guidance that came in early September, with shares down 13% overall over the last three months.
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions and challenging beef conditions paint a weak picture for TSN shares in the near term.
Tyson Foods (TSN - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
View the Zacks #1 Rank List
Bear of the Day: Tyson Foods (TSN)
Key Takeaways
Tyson Foods (TSN - Free Report) is the largest U.S. chicken company and produces, distributes, and markets chicken, beef, pork, and prepared foods. The company's products are marketed and sold primarily by sales staff to grocery retailers, grocery wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, international export companies, and domestic distributors.
Earnings revisions have been trending downward, landing the stock as a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Recent Quarterly Results
Tyson’s latest quarterly results were mixed, with adjusted earnings of $0.99 per share climbing 9% YoY but falling short of the Zacks Consensus estimate. Sales of $13.9 billion were essentially flat from the same period last year and similarly came in below expectations.
Image Source: Zacks Investment Research
TSN’s Beef segment remains the biggest concern, weighed down by tight cattle supplies and elevated cattle costs. Beef sales fell to $5.4 billion in its latest quarter despite a 12% increase in average prices, with volumes sinking nearly 16% YoY.
While strength in Chicken and Prepared Foods has helped offset some of the weakness, TSN recently lowered its FY26 outlook, now expecting revenue growth of 1.5% - 2% and adjusted operating income of $1.85 - $2.05 billion. The updated guidance reflects significant margin compression from volatile cattle prices, with Tyson calling the environment one of the most severe cattle shortages in U.S. history.
Shares reacted negatively to the above-mentioned results and similarly came under further pressure following the updated guidance that came in early September, with shares down 13% overall over the last three months.
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions and challenging beef conditions paint a weak picture for TSN shares in the near term.
Tyson Foods (TSN - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.