Tyson Foods Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tyson Foods (NYSE:TSN) will unveil its latest earnings on Monday, November 19, 2012. Tyson Foods and its subsidiaries produce, distribute and market chicken, beef, pork, prepared foods and related products.

Tyson Foods Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 43 cents per share, a rise of 65.4% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from 44 cents during the last month. Analysts are projecting profit to rise by 5.3% versus last year to $1.79.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 50 cents per share versus a mean estimate of profit of 55 cents per share. In the second quarter, the company beat estimates by 6 cents.

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A Look Back: In the third quarter, profit fell 61.2% to $76 million (21 cents a share) from $196 million (51 cents a share) the year earlier, missing analyst expectations. Revenue rose 0.7% to $8.31 billion from $8.25 billion.

Stock Price Performance: Between August 20, 2012 and November 13, 2012, the stock price rose $1.82 (11.9%), from $15.29 to $17.11. The stock price saw one of its best stretches over the last year between September 7, 2012 and September 14, 2012, when shares rose for six straight days, increasing 4.8% (+76 cents) over that span. It saw one of its worst periods between June 29, 2012 and July 17, 2012 when shares fell for 12 straight days, dropping 18% (-$3.38) over that span.

Analyst Ratings: With five analysts rating the stock as a buy, four rating it as a sell and four rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.9% in the fourth quarter of the last fiscal year, 9.4% in the first quarter and 3.4% in the second quarter before increasing again in the third quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 4.4% in the second quarter before dropping in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $8.49 billion in revenue this quarter, a rise of 1.1% from the year-ago quarter. Analysts are forecasting total revenue of $33.35 billion for the year, a rise of 3.3% from last year’s revenue of $32.27 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.25 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.19 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 5.4% to $5 billion while liabilities rose by 2.4% to $2.22 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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