Yahoo Finance Did Tyson Foods Beat Earnings Estimates in Fiscal 2Q16?
Tyson Foods’ Fiscal 2Q16 Earnings and Updated Guidance
Earnings rose 43%
Tyson Foods (TSN) reported its financial results for fiscal 2Q16 on May 9. Later in the day, management held a conference call to discuss the results. The company recorded adjusted EPS (earnings per share) of $1.07 for fiscal 2Q16. EPS rose by a huge margin of 43% compared to EPS of $0.75 in fiscal 2Q15. The company’s EPS surpassed estimates by 11.4%.
Fiscal 2016 EPS guidance
The company has raised its fiscal 2016 EPS guidance to $4.20–$4.30 due to its strong results this quarter and a positive outlook for fiscal 2016. This increased guidance would give Tyson a four-year EPS CAGR (compound annual growth rate) of at least 21%. Analysts who follow the company are expecting it to grow earnings in the second half of 2016 to achieve growth of 36% in fiscal 2016.
Peers’ earnings
Tyson Foods’ peers in the food and packaging industry include Hormel Foods (HRL), Flowers Foods (FLO), and Pilgrim’s Pride (PPC). Hormel Foods grew earnings by 25%, while Flowers Foods’ and Pilgrim’s Pride’s earnings fell by 20% and 44% in their last respective quarters.
To gain exposure to Tyson Foods, you can invest in the PowerShares DWA Consumer Staples Momentum Portfolio (PSL) and the VanEck Vectors Agribusiness ETF (MOO). They invest 6.7% of their combined holdings in Tyson Foods.
Series overview
In this series, we’ll further discuss Tyson Foods’ fiscal 2Q16 performance, its segmental performance, and its outlook for 2016. We also discuss what Tyson Foods has returned to its shareholders and how it plans to drive growth through innovation. Further, we’ll take a look at Tyson Foods’ and its peers’ moving averages, Tyson Foods’ stock reaction to the earnings release, its valuation, and analysts’ recommendations for the stock after the earnings release.
Browse this series on Market Realist:
