Tyson Foods Inc. (NYSE: TSN) has confirmed that it will release its quarterly earnings report on Monday, February 7, 2022.
What to look for
The company had double-digit sales and earnings increase in Q4 and FY2021 because of continued strength in customer demand and the company's diverse portfolio. With the company experiencing record performance in the beef segment, the company anticipates robust Q1 2022 results.
Earnings: Stockearning’s Estimated EPS for Q1 2022 is expected to be $1.98 per share. In the fourth quarter, the company had GAAP EPS of $2.71, reflecting a 107% YoY increase, and adjusted EPS was $2.3, up 35% YoY. For the current fiscal year, the company expects EPS of $7 for the current fiscal year and EPS of $7 next year. Historical EPS Performance for the past 12 quarters shows the company has topped estimates eight times (66%), matched estimates once (8%), and missed thrice (25%).
Revenue: The company reported revenue of $12.81 billion, beating consensus estimates of $12.69 billion. The company reported revenue of $47.049 billion for the full year compared to $43.185 billion a year ago.
Stock movement: TSN shares have gained 12.4% since the company released its fourth-quarter earnings. Interestingly, TSN shares have been UP 29 times out of the past 48 quarters. So, the historical price reaction suggests a 60% probability of the share price going UP once the company reports its fiscal Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Argus analyst John Staszak maintained his Buy rating and a price target of $92 in Tyson Foods but raised his FY2022 EPS to view by $0.05 to $8.05 following the Q4 earnings beat. As demand for protein grows, Staszak sees "strong prospects" for TSN, and Tyson Foods invests in e-commerce upgrades, capacity expansion, and new products.
BMO Capital analyst Kenneth Zaslow raised his price target on TSN from $95 to $103 and maintained a Buy rating on the stock. Zaslow cited the company's third-quarter earnings beat attributed to the "extraordinary" Beef margins, which offset a shortfall in Prepared Foods profit. The analyst added that he is increasingly buoyant on his rating on the stock and believes the company has a great capacity to affect internal transformation via actions, expecting its robust underlying fundamentals converging with operational improvement in the fiscal year 2022.
Stephens analyst Ben Bienvenu raised his price target from $95 to $100 and maintained a Buy rating in the stock. The analyst told investors that while Q4 results were underwhelming, he believes the quarter was "more reflective of where Tyson has been vs. where Tyson is going." Ben added that the outlook and management commentary points to the continued inflection in the company's fundamentals, paving the way for a "steady ramp in earnings power." As a result, he feels the "setup is as constructive for the company as it has been for some time.
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