The 10-second takeaway
For the quarter ended March 30 (Q2), Tyson Foods missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Tyson Foods logged revenue of $8.42 billion. The 11 analysts polled by S&P Capital IQ expected sales of $8.60 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.36. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. Non-GAAP EPS of $0.36 for Q2 were 18% lower than the prior-year quarter's $0.44 per share. GAAP EPS of $0.26 for Q2 were 41% lower than the prior-year quarter's $0.44 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 4.8%, 170 basis points worse than the prior-year quarter. Operating margin was 2.1%, 160 basis points worse than the prior-year quarter. Net margin was 1.1%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.73 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $34.57 billion. The average EPS estimate is $2.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 287 members out of 359 rating the stock outperform, and 72 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Tyson Foods a green thumbs-up, and 10 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 $26.17.
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