Tyson Foods Inc (NYSE:TSN)
Tyson Foods Earnings
On Monday before the market opened, Tyson Foods ($TSN) announced first quarter earnings that topped analyst expectations and gave shares extra volatility in the pre-market session. The company announced first quarter earnings per share of $1.59 on $9.18 billion in revenue while analyst were looking for $1.27 earnings per share on $9.03 billion in revenue.
TSN also raised full year outlook to a range of $4.90 – $5.05 per share for 2017 which topped estimates of $4.89. Currently analysts have an average price target of $69.23 but that will probably be raised over the coming days.
TSN Technicals
Shares of TSN popped to $70.50 in the pre-market following Q1 earnings data but quickly retraced and as of the time of this writing are trading at $65.10, a half a percent decline from Fridays close at $65.39. Look for shares to be extra volatile today as investors digest the earnings data.
Look for support to come in at $64 and $63.03 while resistance will come in at $66 and $67.48. Shares are currently below their 200-day moving average at $67.48 but are above their 50-day moving average at $61.51.
Shares are still recovering from their last earnings release that sank share price but with the first quarter coming in strong we could see some buyers step into this name over the following weeks.
CEO Comments
Tom Hayes, president and chief executive officer of Tyson Foods said.
The year is off to the best start in company history with record earnings, record operating income and record cash flows. Return on sales for each operating segment was in or above the normalized range. The tremendous returns generated in the Beef and Pork segments are providing fuel for growth in our value-added Chicken and Prepared Foods segments.
Company Profile
Tyson Foods, Inc. engages in the production of processed food. It operates through the following segments: Chicken, Beef, Pork and Prepared Foods. The Chicken segment involves in domestic operations related to raising and processing live chickens into fresh, frozen, and value-added chicken products, as well as sales from allied products. The Beef segment includes operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products.
The Pork segment operates with live markets hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. The Prepared Foods segment manufactures and markets frozen and refrigerated food products and logistic operations to move products through the supply chain. The company was founded by John W. Tyson in 1935 and is headquartered in Springdale, AR.