The 10-second takeaway
For the quarter ended March 31 (Q2), Tyson Foods missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share grew.
Gross margin shrank, operating margin dropped, and net margin was steady.
Tyson Foods reported revenue of $8.27 billion. The 13 analysts polled by S&P Capital IQ wanted to see sales of $8.48 billion on the same basis. GAAP-reported sales were 3.4% higher than the prior-year quarter's $8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.45 for Q2 were 7.1% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.5%, 20 basis points worse than the prior-year quarter. Operating margin was 3.7%, 10 basis points worse than the prior-year quarter. Net margin was 2%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $8.81 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $34.42 billion. The average EPS estimate is $2.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 263 members out of 335 rating the stock outperform, and 72 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Tyson Foods a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tyson Foods is outperform, with an average price target of $22.92.
- Add Tyson Foods to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.