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Tyson Foods (TSN) Queues for Q4 Earnings: What to Expect?

Tyson Foods, Inc. TSN is likely to register a top-and-bottom-line decrease when it reports fourth-quarter fiscal 2023 earnings on Nov 13. The Zacks Consensus Estimate for revenues is pegged at $13.7 billion, suggesting a slight decline from the prior-year quarter’s reported figure.

The consensus mark for quarterly earnings has risen by a penny in the past 30 days to 33 cents per share. However, this indicates a decline of 79.8% from the year-ago quarter’s reported figure. TSN has a trailing four-quarter negative earnings surprise of 50.5%, on average.

Factors to Note

Tyson Foods has been witnessing sluggishness across its Pork and Beef segments for a while now. In the third quarter of fiscal 2023, volumes in Tyson Foods’ Pork segment dropped 1.8%, and the average price tumbled 16.4%. In the Beef segment, volumes dropped 5.3% due to reduced head processed, and the average price fell 5.2% due to lower domestic demand and weaker export markets. The persistence of these trends remains a concern for the fourth quarter.

Tyson Foods, Inc. Price, Consensus and EPS Surprise

Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote

The consensus mark for fourth-quarter sales for the Pork segment stands at $1,443 million, suggesting a decline from the $1,604 million reported in the fourth quarter of fiscal 2022.

Apart from this, TSN witnessed elevated input costs per pound in the third quarter. Most of this was primarily due to the increase in cattle costs, along with unfavorable derivative impacts and higher labor costs.

However, Tyson Foods’ focus on driving growth across the core protein platform bodes well. The company expects global demand for protein to continue rising and has been well-placed to cater to it. To expand the appeal and market opportunities for its products, TSN has been constantly building innovations. The USDA projects fiscal 2023 domestic protein production (beef, pork, chicken and turkey) to increase slightly from the fiscal 2022 level.

These factors, along with operational and supply-chain efficiency programs, are likely to aid fourth-quarter results.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Tyson Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Tyson Foods carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -16.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:

Ollie's Bargain Outlet (OLLI) currently has an Earnings ESP of +3.75% and a Zacks Rank #2. The company is likely to register top-and-bottom-line growth when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for Ollie's Bargain’s quarterly revenues is pegged at $468.8 million, indicating a rise of 12.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ollie's Bargain’s quarterly earnings per share of 43 cents suggests growth of 16.2% from the year-ago quarter’s levels. OLLI has a trailing four-quarter earnings surprise of 1.3%, on average.

The J. M. Smucker Co. SJM has an Earnings ESP of +0.27% and a Zacks Rank #3. The company is slated to witness a top-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for SJM’s quarterly revenues is pegged at around $2 billion, which suggests a decrease of 11.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings has remained unchanged over the past 30 days at $2.47 per share, which calls for growth of 2.9% from the year-ago quarter’s reported number. SJM delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.

United Natural Foods UNFI currently has an Earnings ESP of +11.08% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for United Natural Foods’ quarterly revenues is pegged at $7.6 billion, suggesting growth of 0.4% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for United Natural’s bottom line has deteriorated considerably in the past 30 days to a loss of 26 cents per share. UNFI delivered a negative earnings surprise of around 3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The J. M. Smucker Company (SJM) : Free Stock Analysis Report

Tyson Foods, Inc. (TSN) : Free Stock Analysis Report

United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report

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