The 10-second takeaway
For the quarter ended June 30 (Q3), Tyson Foods missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins expanded, net margins shrank.
Tyson Foods booked revenue of $8.31 billion. The 12 analysts polled by S&P Capital IQ expected revenue of $8.73 billion on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $8.25 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 $0.50. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.21 for Q3 were 59% lower than the prior-year quarter's $0.51 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 6.8%, 40 basis points better than the prior-year quarter. Operating margin was 4.0%, 20 basis points better than the prior-year quarter. Net margin was 0.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.79 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $34.04 billion. The average EPS estimate is $1.92.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 270 members out of 340 rating the stock outperform, and 70 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Tyson Foods a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tyson Foods is hold, with an average price target of $22.86.
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