Tyson Foods, Inc. (NYSE: $TSN) is a multinational US-based food company that produces nearly 20% of all beef, pork, and chicken in the US. The company accounts for the largest share of annual US beef exports.
It recently released its Q4 earnings report, which contained mixed results. Consequently, its stock tumbled on November 13, 2023, closing trading at around 2.8% lower.
Tyson Foods, Inc. Quarterly Earnings Report
According to Tyson Foods’ fiscal Q4 earnings report, the company reported a revenue of $13.35 billion, 2.70% lower than the analysts’ prediction of $13.72 billion. The revenue for Q3 is a 2.80% drop from the previous.
Earnings per share was at $0.37, against analysts’ prediction of $0.25, a surprise of 47.13%. In the past four quarters, Tyson Foods has missed analysts’ revenue projections 100% of the time, while it has missed EPS predictions 75% of the time.
For the full-year 2023, the company’s revenue stood at $52.88 billion, a drop of 0.8% from the previous year. FY23 EPS is at $1.34, representing an 85% drop from the previous year.
According to the report, pricing for beef was 10% higher but lower for all segments. Consequently, prices for the quarter experienced a 1.4% drop compared to the same quarter last year.
Due to the current challenges, the company announced it would close six chicken facilities, which they expect will cut costs and improve their current capacity utilization. In August, Tyson Foods announced the closing down of its Chinese chicken business.
Market Forecasts
In its outlook segment, Tyson Foods declared that it expected revenue in 2024 to remain flat compared to 2023. The company’s outlook is based on current market conditions.
Its beef business, its largest segment, has been struggling as US cattle inventories have fallen to their lowest levels in decades. Additionally, its pork and chicken segments will struggle with excess inventory in 2023.
In a recent interview, Tyson Foods CEO Donnie King stated that chicken demand would rise amidst challenging macroeconomic conditions. He noted that most consumers opt for cheaper protein sources like chicken during tough times.
Tyson Foods, Inc. (TSN) Stock Price Forecast
At the close of trading on November 13, 2023, TSN stock was worth $45.62. The macroeconomic challenges of 2023 have taken their toll on TSN stock; it is down 28.27% year-to-date. In the past six months, the stock has dipped by 6.67%.
Based on the figures reported by the company, and general macroeconomic indicators, stock market analysts give TSN stock a hold rating. That means they expect the stock to perform similarly to the market in the next 12 months.
The highest price target for Tyson Foods stock is $58, and the lowest is $45. The average price target is $49.25, an upside of 6.74% for the stock.
Should You Buy Tyson Foods Stock
Tyson Foods’ hold rating is accurate based on the analysts’ forecast and the company’s guidance of flat revenues in 2024. As such, it would not be a great time to add. TSN stock to your portfolio.
However, you should closely monitor the macroeconomic conditions, which will undoubtedly affect TSN’s price. If conditions improve, it could turn things around for the stock.
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