Tyson Foods’ Q4 Earnings: What Analysts Expect



  • Tyson Foods is set to announce its Q4 earnings tomorrow.
  • TSN stock is up about 55% this year. After a guidance cut, its stock fell.

Tyson Foods (TSN) is scheduled to announce its fiscal 2019 fourth-quarter earnings results tomorrow. We think continued demand for protein and higher beef, pork, and prepared food pricing could support its fourth-quarter top line. However, in September, Tyson Foods lowered its fiscal 2019 EPS outlook to $5.30–$5.70 from $5.75–6.10, citing margin pressure. The company expects issues with its chicken operations, a beef processing plant fire, and commodity volatility to impact margins.

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Q4 earnings: What analysts expect

In the fourth quarter, analysts expect Tyson Foods’ revenue to grow about 10% YoY (year-over-year) to $11.0 billion, boosted by sustained demand for protein-rich food and the company’s diversified portfolio.

We believe the Tyson Foods’ beef, pork, and prepared food segments could continue to gain from higher volumes and pricing. However, its chicken segment could face challenges.

Analysts expect Tyson Foods’ adjusted EPS to fall faster in the fourth quarter, by about 18% YoY to $1.29. This year, the company’s adjusted EPS have fallen in all quarters so far. In the third quarter, Tyson Foods’ adjusted EPS fell by about 2%.

What’s in the cards for Tyson Foods stock?

Tyson Foods stock has taken a beating since the company lowered its fiscal 2019 EPS guidance. We think TSN stock could jump if the company manages to beat Wall Street’s fourth-quarter expectations.

We also think that TSN stock could gain thanks to higher demand for protein products in the long run. Additionally, the company’s foray into the alternative protein segment could support sales growth. Tyson Foods has launched two plant-based protein products.

However, margin headwinds could remain a drag in the near term. As of November 8, Tyson Foods stock had risen about 55% year-to-date.


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