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.
Will Rising Beef Demand Drive Tyson Foods' (TSN) Q4 Earnings?
Read MoreHide Full Article
Tyson Foods, Inc. (TSN - Free Report) is slated to report fourth-quarter fiscal 2017 results on Nov 13, before the opening bell.
We expect the company to continue gaining from rise in demand at the beef and chicken segments. Rising preference for protein rich brands in the prepared foods category is also expected to favor Tyson Foods’ performance in the to-be-reported quarter.
Let’s now take a look at how things are shaping up for this announcement.
Which Way are Estimates Treading?
The Zacks Consensus Estimate for the fourth quarter and fiscal 2017 has improved in the last 30 days. Estimates for the fourth quarter moved up 2 cents to $1.37. The consensus mark for fiscal 2017 depicts an increase of 3 cents to $5.22. We note that on Sep 28, management raised fiscal 2017 earnings outlook to the range of $5.20-$5.30 per share, higher than the previous guidance of $4.95-$5.05.
The current Zacks Consensus Estimate for the fourth quarter and fiscal 2017 reflects year-over-year growth of 42.7% and 18.9%, respectively. Further, analysts polled by Zacks expect net sales of $9,951 million for the said quarter, up 8.7% from the year-ago quarter. Also, sales for fiscal 2017 are projected to inch up 2.9% to $38 billion.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods has been benefitting from increased demand across beef, pork and chicken segments. The company’s prepared food segment has also been witnessing steady growth backed by the surging demand for protein-packed brands. These factors are expected to favorably impact the company’s top and bottom line in the upcoming quarterly results.
Notably, the consensus mark for sales in the beef segment is projected to grow 4.8% to reach $3,645 million in the fourth quarter. Improved availability of cattle supply, surging domestic demand and higher exports are likely to favor the beef segment’s performance. The consensus estimate for sales in the pork segment is expected to move up 5% to $1,297 million, backed by improving demand for pork products. Also, this category has been gaining from higher exports for a while. This may serve as a tailwind in the fourth quarter.
Tyson Foods’ chicken segment has also been depicting sturdy growth, driven by the increasing number of health-conscious consumers who have been shifting away from processed food and red meat. The segment has also been serving as a suitable platform for undertaking innovation and adding new products to an already rich food line up. Driven by such upsides, the consensus mark for sales at the chicken segment in the fourth quarter is expected to increase 3.7% to reach $2,916 million.
Moving on, Tyson Foods’ prepared food segment is also expected to continue benefiting from the positive synergies of the AdvancePierre buyout. Through the acquisition, management has also been trying to expand fresh food offerings alongside of steady advancement in the protein brands portfolio. Driven by such factors, consensus estimate for sales in the prepared food segment is expected to surge 22.3% to reach $2,247 million in the upcoming fourth-quarter results.
In addition to expanding product portfolio, the company is reinventing its supply-chain and procurement processes, while lowering overhead expenses to boost savings. It has also been streamlining operations and adhering to downsizing in several locations to combat rising wage-related costs.
What does the Zacks Model Unveil?
Our proven model shows 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 may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tyson Foods has an Earnings ESP of +1.28% and carries a Zacks Rank #2, which makes us reasonably confident of an earnings beat.
Stocks With Favorable Combinations
Here are some companies which, according to our model, have the right combination of elements to deliver earnings beat.
Energizer Holdings Inc (ENR - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2.
United Natural Foods, Inc. (UNFI - Free Report) has an Earnings ESP of +6.33% and a Zacks Rank #2.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Will Rising Beef Demand Drive Tyson Foods' (TSN) Q4 Earnings?
Tyson Foods, Inc. (TSN - Free Report) is slated to report fourth-quarter fiscal 2017 results on Nov 13, before the opening bell.
We expect the company to continue gaining from rise in demand at the beef and chicken segments. Rising preference for protein rich brands in the prepared foods category is also expected to favor Tyson Foods’ performance in the to-be-reported quarter.
Let’s now take a look at how things are shaping up for this announcement.
Which Way are Estimates Treading?
The Zacks Consensus Estimate for the fourth quarter and fiscal 2017 has improved in the last 30 days. Estimates for the fourth quarter moved up 2 cents to $1.37. The consensus mark for fiscal 2017 depicts an increase of 3 cents to $5.22. We note that on Sep 28, management raised fiscal 2017 earnings outlook to the range of $5.20-$5.30 per share, higher than the previous guidance of $4.95-$5.05.
The current Zacks Consensus Estimate for the fourth quarter and fiscal 2017 reflects year-over-year growth of 42.7% and 18.9%, respectively. Further, analysts polled by Zacks expect net sales of $9,951 million for the said quarter, up 8.7% from the year-ago quarter. Also, sales for fiscal 2017 are projected to inch up 2.9% to $38 billion.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. Price, Consensus and EPS Surprise | Tyson Foods, Inc. Quote
Factors at Play
Tyson Foods has been benefitting from increased demand across beef, pork and chicken segments. The company’s prepared food segment has also been witnessing steady growth backed by the surging demand for protein-packed brands. These factors are expected to favorably impact the company’s top and bottom line in the upcoming quarterly results.
Notably, the consensus mark for sales in the beef segment is projected to grow 4.8% to reach $3,645 million in the fourth quarter. Improved availability of cattle supply, surging domestic demand and higher exports are likely to favor the beef segment’s performance. The consensus estimate for sales in the pork segment is expected to move up 5% to $1,297 million, backed by improving demand for pork products. Also, this category has been gaining from higher exports for a while. This may serve as a tailwind in the fourth quarter.
Tyson Foods’ chicken segment has also been depicting sturdy growth, driven by the increasing number of health-conscious consumers who have been shifting away from processed food and red meat. The segment has also been serving as a suitable platform for undertaking innovation and adding new products to an already rich food line up. Driven by such upsides, the consensus mark for sales at the chicken segment in the fourth quarter is expected to increase 3.7% to reach $2,916 million.
Moving on, Tyson Foods’ prepared food segment is also expected to continue benefiting from the positive synergies of the AdvancePierre buyout. Through the acquisition, management has also been trying to expand fresh food offerings alongside of steady advancement in the protein brands portfolio. Driven by such factors, consensus estimate for sales in the prepared food segment is expected to surge 22.3% to reach $2,247 million in the upcoming fourth-quarter results.
In addition to expanding product portfolio, the company is reinventing its supply-chain and procurement processes, while lowering overhead expenses to boost savings. It has also been streamlining operations and adhering to downsizing in several locations to combat rising wage-related costs.
What does the Zacks Model Unveil?
Our proven model shows 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 may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tyson Foods has an Earnings ESP of +1.28% and carries a Zacks Rank #2, which makes us reasonably confident of an earnings beat.
Stocks With Favorable Combinations
Here are some companies which, according to our model, have the right combination of elements to deliver earnings beat.
Nomad Foods Limited (NOMD - Free Report) has an Earnings ESP of +8.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here
Energizer Holdings Inc (ENR - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2.
United Natural Foods, Inc. (UNFI - Free Report) has an Earnings ESP of +6.33% and a Zacks Rank #2.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>