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.
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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.
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