JackF/iStock via Getty Images I am always on the hunt for assets that compound and are less correlated to the market. The idea is that it counters market volatility to a certain extent, but many times, it is much more important to know the quality of the business itself. While searching for such names, I came across Tyson Foods (NYSE:TSN) and thought this was a buy in the current environment. While its performance during recessions has not been great, it still gives me the confidence to invest and stay in i ...

Tyson Foods (TSN) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this meat producer have returned +8.8%, compared to the Zacks S&P 500 composite's -4.5% change. During this period, the Zacks Food - Meat Products industry, which Tyson falls in, has gained 9.3%. The key question now is: What could be the stock's future direction? Whil ...

Company Overview - Tyson Foods Inc. is the largest chicken company in the U.S., founded in 1935, and produces, distributes, and markets chicken, beef, pork, and prepared foods [10] - The company's products are marketed primarily to grocery retailers, wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, and international export companies [10] Investment Ratings - Tyson Foods holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [11] - The company has a Momentum Style Score of A, with shares increasing by 8.4% over the past four weeks [11] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.24 to $2.82 per share [11] - Tyson Foods has an average earnings surprise of 49%, suggesting strong performance relative to expectations [11] Conclusion - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Tyson Foods is recommended for investors' consideration [12]

Core Viewpoint - Tyson Foods (NYSE: TSN) reported strong Q3 earnings, outperforming the S&P 500, with a year-to-date increase of nearly 16%, despite ongoing market volatility and inflation concerns [3][18]. Company Overview - Tyson Foods operates globally in four primary segments: Beef, Pork, Chicken, and Prepared Foods, which are generally resistant to economic cycles [4]. - The company aims to grow its market share and improve operational efficiencies to enhance earnings potential and cash flow [4]. Q3 Earnings & Financials - Q3 earnings per share were $0.87, exceeding expectations by $0.20, with revenue rising 1.6% year-over-year to $13.3 billion [5]. - Adjusted operating income for the quarter was $491 million, primarily driven by growth in the Chicken segment [5]. - The Chicken segment generated $4.2 billion in sales for Q3 2023, while the Beef segment saw sales increase from $4.9 billion to $5.2 billion [6][7]. Segment Performance - The Pork segment experienced a 1.2% increase in volume and a 12.6% rise in prices, resulting in sales of $1.46 billion, up from $1.3 billion [7]. - The Prepared Foods segment had slight increases in volume and price, with sales totaling $2.4 billion and adjusted operating income of $203 million [7]. Cash Flow & Capital Expenditures - Year-to-date operating cash flow increased to $1.97 billion, up from $1.4 billion the previous year [8]. - Capital expenditures decreased to $884 million from $1.5 billion, indicating a cautious approach to investment [8]. Debt & Cash Position - Tyson Foods has long-term debt of $9.6 billion, with a significant cash and equivalents position of $2.1 billion [9]. - The company is expected to prioritize debt reduction in the coming quarters [9]. FY2024 Guidance - FY2024 guidance for Chicken adjusted operating income was revised upward to $850 million to $950 million, while the Beef segment's expected loss was adjusted to -$400 million to -$300 million [11]. - Sales and free cash flow estimates remained unchanged [11]. Dividend Information - The current dividend is $0.49 per share, with a yield of 3.2% and a payout ratio improved to about 73% [13]. - The dividend has grown at a compound annual growth rate (CAGR) of 6.47% over the last five years [13]. Market Outlook - Investor capital is shifting from the tech sector to more stable consumer-facing sectors due to market uncertainties [15]. - The inflation rate has decreased to 3%, which may positively influence consumer spending on food items [16]. Valuation & Investment Perspective - Tyson Foods trades at a trailing twelve months price-to-earnings ratio of 22.5x, above the sector median of 18.1x [17]. - The company maintains a hold rating as it is perceived to trade at a premium, with a fair value estimate of $65 per share [18].

Tyson Foods, Inc. (NYSE:TSN) Q3 2024 Earnings Conference Call August 5, 2024 9:00 AM ET Company Participants Sean Cornett - VP,IR Donnie King - President and CEO Curt Calaway - Interim CFO Melanie Boulden - Group President, Prepared Foods and Chief Growth Officer Wes Morris - Group President, Poultry Brady Stewart - President, Beef and Pork and Chief Supply Chain Officer Devin Cole - President, International and Global McDonald’s Conference Call Participants Kenneth Goldman - J.P. Morgan Adam Samuelson - Go ...

Financial Performance - Q3 2024 - Sales reached $13.14 billion, slightly down from $13.353 billion in Q3 2023[8] - Adjusted Operating Income increased significantly to $491 million, compared to $179 million in Q3 2023[8] - Adjusted EPS improved to $0.87 per share, a substantial increase from $0.15 per share in Q3 2023[8] Segment Performance - Prepared Foods sales increased by 2% to $2.432 billion, up from $2.383 billion in Q3 2023, but Adjusted Operating Income decreased to $203 million from $220 million[11] - Chicken segment sales decreased to $4.076 billion from $4.212 billion, but Adjusted Operating Income surged to $307 million from a loss of $63 million[11] - Beef sales increased to $5.241 billion from $4.956 billion, while Adjusted Operating Income decreased to $79 million from $92 million[13] - Pork sales increased to $1.462 billion from $1.324 billion, with Adjusted Operating Income improving to $22 million from a loss of $70 million[15] Financial Health & Guidance - The company generated strong operating cash flow year-to-date (YTD) of $1.429 billion[17] - Capital expenditures YTD totaled $884 million[17] - The company revised its FY24 guidance for Chicken Adjusted Operating Income to $850-950 million, up from the prior indication of $700-900 million[19] - The company expects net interest expense of approximately $395 million and an effective tax rate of 23-24% for FY24[19]

Core Insights - Tyson Foods, Inc. reported a positive turnaround in its financial performance for the third quarter and the first nine months of fiscal 2024, with significant increases in sales, operating income, and earnings per share compared to the previous year [1][2][3]. Financial Performance - **Third Quarter Results**: - Sales reached $13,353 million, up 1.6% from $13,140 million in the same quarter last year [3]. - GAAP operating income was $341 million, a substantial increase of $691 million from a loss of $350 million in the prior year [3]. - Adjusted operating income was $491 million, up 174% from $179 million [3]. - GAAP earnings per share (EPS) was $0.54, compared to a loss of $1.18 in the previous year [3]. - Adjusted EPS was $0.87, up 480% from $0.15 [3]. - **Nine Months Results**: - Total sales for the nine months were $39,744 million, a slight increase of 0.5% from $39,533 million [2]. - GAAP operating income was $884 million, up $816 million from $68 million [2]. - Adjusted operating income was $1,308 million, an increase of 88% from $697 million [2]. - GAAP EPS was $1.25, up from a loss of $0.56 [2]. - Adjusted EPS was $2.18, a 125% increase from $0.97 [2]. Segment Performance - **Beef Segment**: - Third quarter sales were $5,241 million, up 4.4% from $4,956 million [4]. - Nine-month sales were $15,218 million, a 0.9% increase from $14,296 million [4]. - **Pork Segment**: - Third quarter sales reached $1,462 million, up 12.6% from $1,324 million [4]. - Nine-month sales were $4,465 million, a 4.0% increase from $4,274 million [4]. - **Chicken Segment**: - Third quarter sales were $4,076 million, down 3.7% from $4,212 million [4]. - Nine-month sales were $12,174 million, down 2.7% from $12,905 million [4]. - **Prepared Foods Segment**: - Third quarter sales were $2,432 million, a slight increase of 0.1% from $2,383 million [5]. - Nine-month sales were $7,379 million, up 1.7% from $7,343 million [5]. - **International/Other Segment**: - Third quarter sales were $582 million, down 14.6% from $633 million [5]. - Nine-month sales were $1,744 million, down 11.1% from $1,879 million [5]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months was $1,973 million, up 38% from the previous year [2]. - Free cash flow was $1,089 million, a significant increase of $1,224 million from the prior year [2]. - As of June 29, 2024, total liquidity was approximately $4.8 billion, well above the minimum liquidity target of $1.0 billion [3][17]. Outlook - For fiscal 2024, the USDA projects a slight increase in domestic protein production compared to fiscal 2023 [8]. - Tyson anticipates total company adjusted operating income of $1.6 billion to $1.8 billion for fiscal 2024 [13]. - Sales are expected to remain relatively flat compared to fiscal 2023 [14]. - Capital expenditures are projected to be between $1.2 billion and $1.3 billion, focusing on profit improvement and maintenance projects [15].

Core Viewpoint - Tyson Foods, Inc. is set to release its third-quarter earnings on August 5, with expectations of increased earnings and revenue, while also offering a dividend yield that may attract investors [1][4][5]. Dividend Insights - Tyson Foods currently offers an annual dividend yield of 3.23%, translating to a quarterly dividend of $0.49 per share, or $1.96 annually [1]. - To generate $500 monthly or $6,000 annually from dividends, an investment of approximately $185,986 or around 3,061 shares is required. For a more modest income of $100 monthly or $1,200 annually, an investment of $37,185 or around 612 shares is needed [1][2]. Earnings Expectations - Analysts anticipate Tyson Foods will report quarterly earnings of $0.65 per share, a significant increase from $0.15 per share in the same quarter last year [4]. - The projected quarterly revenue for Tyson Foods is $13.21 billion [5]. Stock Performance - Tyson Foods shares experienced a slight decline of 0.2%, closing at $60.76 [4]. - Bank of America Securities analyst Bryan Spillane has maintained a Neutral rating on Tyson Foods, lowering the price target from $62 to $60 [5].

In its upcoming report, Tyson Foods (TSN) is predicted by Wall Street analysts to post quarterly earnings of $0.61 per share, reflecting an increase of 306.7% compared to the same period last year. Revenues are forecasted to be $13.17 billion, representing a year-over-year increase of 0.2%. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps ga ...

SPRINGDALE, Ark., July 09, 2024 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN) has entered into an agreement to sell its Vienna, Georgia poultry complex to House of Raeford Farms, the company announced today. The transaction is subject to customary closing conditions including approval by U.S. regulators. Tyson Foods, Inc. (NYSE: TSN) is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The company is u ...