We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Tyson Foods (TSN) & Protix to Build Insect Ingredient Facility
Read MoreHide Full Article
Tyson Foods, Inc. (TSN - Free Report) recently entered into a partnership with Protix, a leading Netherlands-based company specializing in insect ingredients.
The collaboration will leverage Tyson Foods’ global scale and expertise in the meat industry and Protix’s proficiency in the insect industry to support scale production of insect ingredients and cater to its growing demand. This will help drive the insect ingredient industry’s growth, apart from expanding the use of insect ingredient solutions in proteins and lipids in the global food system.
Per the agreement, Tyson Foods will obtain a minority stake in Protix through a direct equity investment that would likely support the latter’s global expansion. Apart from opening a new revenue stream, the strategic investment is expected to support Tyson Foods in driving growth and innovation across its core protein platform and creating more sustainable food solutions. The company expects global demand for protein to continue rising and remains well-placed to cater to it.
As revealed, both companies have also decided to form a joint venture for the construction and operation of an insect ingredient facility in the continental United States. Once completed, it will be the first facility to specialize in upcycling food manufacturing byproducts into insect proteins and lipids for use in the aquaculture, pet food and livestock industries. The facility will incorporate an enclosed system to support the entire process of insect protein production, including breeding, incubating and insect larvae hatching.
What’s More
Although Tyson Foods remains well positioned to benefit from the solid global demand for protein, it has been grappling with elevated input costs across its segments, mainly due to raw material and labor cost inflation. In the third quarter of fiscal 2023, the company’s gross profit came in at $677 million, down from the $1,611 million reported in the prior-year quarter. It witnessed elevated input costs per pound. Most of this was primarily due to increased cattle costs, unfavorable derivative impacts and higher labor costs. The persistence of such trends is concerning.
Image Source: Zacks Investment Research
The Zacks Rank #5 (Strong Sell) company’s shares have lost 23.4% compared with the 19.7% decline recorded by the industry in the past six months.
Post Holdings is a consumer-packaged goods holding company. POST has a trailing four-quarter earnings surprise of 59.6%, on average. The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 13.2% and 189.3%, respectively, from the year-ago reported numbers.
Inter Parfums manufactures, markets and distributes a range of fragrances and fragrance-related products. The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and earnings indicates 19.7% and 14.9% growth from their respective year-ago reported figures. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Grocery Outlet is a retailer of consumables and fresh products. GO has a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for GO’s current financial-year sales and EPS indicates improvements of 11.2% and 4.9%, respectively, from the year-ago reported numbers.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Tyson Foods (TSN) & Protix to Build Insect Ingredient Facility
Tyson Foods, Inc. (TSN - Free Report) recently entered into a partnership with Protix, a leading Netherlands-based company specializing in insect ingredients.
The collaboration will leverage Tyson Foods’ global scale and expertise in the meat industry and Protix’s proficiency in the insect industry to support scale production of insect ingredients and cater to its growing demand. This will help drive the insect ingredient industry’s growth, apart from expanding the use of insect ingredient solutions in proteins and lipids in the global food system.
Per the agreement, Tyson Foods will obtain a minority stake in Protix through a direct equity investment that would likely support the latter’s global expansion. Apart from opening a new revenue stream, the strategic investment is expected to support Tyson Foods in driving growth and innovation across its core protein platform and creating more sustainable food solutions. The company expects global demand for protein to continue rising and remains well-placed to cater to it.
As revealed, both companies have also decided to form a joint venture for the construction and operation of an insect ingredient facility in the continental United States. Once completed, it will be the first facility to specialize in upcycling food manufacturing byproducts into insect proteins and lipids for use in the aquaculture, pet food and livestock industries. The facility will incorporate an enclosed system to support the entire process of insect protein production, including breeding, incubating and insect larvae hatching.
What’s More
Although Tyson Foods remains well positioned to benefit from the solid global demand for protein, it has been grappling with elevated input costs across its segments, mainly due to raw material and labor cost inflation. In the third quarter of fiscal 2023, the company’s gross profit came in at $677 million, down from the $1,611 million reported in the prior-year quarter. It witnessed elevated input costs per pound. Most of this was primarily due to increased cattle costs, unfavorable derivative impacts and higher labor costs. The persistence of such trends is concerning.
Image Source: Zacks Investment Research
The Zacks Rank #5 (Strong Sell) company’s shares have lost 23.4% compared with the 19.7% decline recorded by the industry in the past six months.
Key Picks
Here, we have highlighted three top-ranked stocks, namely Post Holdings (POST - Free Report) , Inter Parfums (IPAR - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) . While Post Holdings sports a Zacks #1 Rank (Strong Buy), Inter Parfums and Grocery Outlet each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Post Holdings is a consumer-packaged goods holding company. POST has a trailing four-quarter earnings surprise of 59.6%, on average. The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 13.2% and 189.3%, respectively, from the year-ago reported numbers.
Inter Parfums manufactures, markets and distributes a range of fragrances and fragrance-related products. The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and earnings indicates 19.7% and 14.9% growth from their respective year-ago reported figures. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Grocery Outlet is a retailer of consumables and fresh products. GO has a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for GO’s current financial-year sales and EPS indicates improvements of 11.2% and 4.9%, respectively, from the year-ago reported numbers.