Tyson Foods (NYE:TSN) saw its stock drop by 1.69% on Monday following the release of its first quarter earnings report. The meat giant’s earnings and sales fell short of expectations, causing the stock to drop in pre-market trading.
The company reported adjusted earnings of 85 cents per share on sales of $13.26 billion, compared to earnings of $2.87 per share on sales of $12.93 billion the previous year. Analysts had expected earnings of $1.31 per share on sales of $13.52 billion.
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability,” said CEO Donnie King in a press release.
Tyson also saw a decline in revenue in its beef and pork segments, which is expected to continue throughout the full year. The company anticipates adjusted operating margins for beef to decrease from previous levels, and projects sales for fiscal 2023 to be between $55 billion and $57 billion. Shares of Tyson dropped 5% in pre-market trading on Monday to $60.86.
Tyson Foods Inc. Stock Analysis:
The average analyst target price for Tyson Foods Inc. is USD 76.40, with the average analyst ratings being Hold. Stock Target Advisor’s analysis is Bullish, based on 8 positive and 3 negative signals. At the last closing, Tyson Foods Inc. stock price was USD 64.03. Over the past week, the stock price has decreased by 1.69%, in the past month by 0.33%, and over the last year by 27.48%.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
What we don’t like:
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector.