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Tyson Foods (TSN) Queued for Q4 Earnings: Things to Note

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Tyson Foods, Inc. (TSN - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Nov 15. The Zacks Consensus Estimate for quarterly revenues is pegged at $12,559 million, which suggests a rise of 9.6% from the figure reported in the prior-year quarter. The consensus mark for fiscal 2021 revenues is pegged at $47,006 million, suggesting growth of 8.9% from the year-ago period’s levels.

The Zacks Consensus Estimate for Tyson Foods’ quarterly earnings has remained unchanged in the past 30 days at $2.20 per share, projecting a rise of 21.6% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2021 earnings is pegged at $8.27 per share, which suggests a surge of 46.6% from the prior year’s figure. The meat product giant’s bottom line outpaced the Zacks Consensus Estimate by 52.5% in the last reported quarter. Tyson Foods has a trailing four-quarter earnings surprise of 38.4%, on average.

Tyson Foods, Inc. Price and EPS Surprise

 

Tyson Foods, Inc. Price and EPS Surprise

Tyson Foods, Inc. price-eps-surprise | Tyson Foods, Inc. Quote

 

Things to Note

Tyson Foods has been seeing robust growth in the retail business, courtesy of impressive brand performance. In its third-quarter fiscal 2021 earnings call, management highlighted that it expects to keep witnessing escalated volumes above pre-COVID levels in the retail business for the rest of the year. The foodservice business is also seeing a rebound as the restaurant industry is reopening gradually. Tyson Foods’ export markets have been strong. The company’s focus on expanding capacity and implementing automation technology bodes well. Continuation of these factors is likely to have boosted Tyson Foods’ performance in the to-be-reported quarter.

Tyson Foods highlighted that it expects the Beef segment to deliver better performance in fiscal 2021 compared with fiscal 2020 levels. Also, management envisions better results from its operations in the International/Other segment. The company anticipates sales in the bracket of $46-$47 billion for fiscal 2021. However, the company’s Pork segment is likely to have delivered lower performance than fiscal 2020 levels. The Chicken unit is likely to have posted soft results in fiscal 2021.

Tyson Foods expects the ongoing inflationary environment to put pressure on the Prepared Foods business in the next few quarters. Escalated raw material, logistics, ingredients, packaging as well as labor costs are headwinds for the company’s cost of production. Although management is on track to mitigate the impact of inflation with pricing and revenue management, such high costs are likely to have affected its performance to some extent in the quarter under review.

Tyson Foods has been encountering cost-related headwinds due to COVID-19, including escalated costs related to workers’ health. Management anticipates expenses associated with COVID-19 worth nearly $325 million in fiscal 2021.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Tyson Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tyson Foods currently sports a Zacks Rank #1 and has an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.

United Natural Foods (UNFI - Free Report) currently has an Earnings ESP of +30.44% and sports a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022 numbers. Although the consensus mark for quarterly earnings has moved down by a penny in the last 30 days to 61 cents per share, it projects a 19.6% jump from the year-ago quarter’s reported number.

United Natural’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,820 million, which suggests a rise of 2.2% from the figure reported in the prior-year quarter. UNFI’s stock has surged 47.9% in the past three months compared with the industry’s growth of 0.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Greenlane Holdings, Inc. (GNLN - Free Report) currently has an Earnings ESP of +4.55% and carries a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter 2021 results. The Zacks Consensus Estimate has remained unchanged at a loss of 7 cents per share in the past 30 days. The estimate is narrower than a loss of 53 cents reported in the year-ago quarter.

Greenlane’s top line is also expected to rise year over year. The consensus mark for quarterly revenues is pegged at $40.3 million, which suggests a rise of 12.7% from the figure reported in the prior-year quarter. GNLN’s stock has slumped 28.1% in the past three months against the industry’s growth of 0.7%.

DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +17.35% and carries a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports third-quarter fiscal 2021 earnings. Although the consensus mark for quarterly earnings has moved up 3.9% in the last 30 days to $1.88 per share, it projects a 6.5% drop from the year-ago quarter’s reported number.

That said, DICK'S Sporting’s top line is expected to rise year over year. The consensus mark for quarterly revenues is pegged at $2,422 million, which suggests slight growth of 0.4% from the figure reported in the prior-year quarter. DKS’s stock has rallied 18.8% in the past three months compared with the industry’s growth of 9%.