Earnings Preview: Tyson

Feb. 4.10 | About: Tyson Foods (TSN)

Tyson (NYSE:TSN) is expected to report Q1 earnings before the market open on Friday, February 5, with a conference call scheduled for 9:00 am ET.


The consensus estimate is 18c for EPS and $6.58B for revenue. The consensus range is 5c-25c for EPS, and $6.18B-$7.03B for revenue, according to First Call. When Tyson reported Q4 results in November, COO Jim Lochner said that 2010 "should be a much better year," specifying that "we think Beef, Pork and Prepared Foods will continue with a solid performance, and we expect the steps we've taken to improve Chicken will manifest themselves. Also, USDA data point to lower overall protein supplies, and there is potential for good demand improvement as the global economy recovers." The company gave FY10 revenue guidance of approximately $27B vs. a consensus at the time of $26.35B.

Analyst Views

In January, Tyson was upgraded to Outperform from Market Perform at BMO Capital, on valuation, deleveraging balance sheet, and a near-term improvement in fundamentals; Tyson was upgraded to Outperform from Neutral at Credit Suisse, as it believes Tyson is a cyclical stock in the early stages of a rebound in protein processing; And Tyson was upgraded to Buy from Hold at BB&T, on strong near-term fundamentals. Over the last three months, Tyson's stock is up over 11%.