Tyson Foods | $TSN Stock | Knocking Out Great Earnings Guidance

Tyson Foods

Tyson Foods, Inc. (NYSE: TSN)


Shares of Tyson Foods are living up to the first part of their title name (TYSON). Just like professional boxer Mike Tyson used to knock out boxers, it seems that Tyson Foods is knocking out sales and earnings growth better than were being expected by analysts and investors alike.

The company announced that their upcoming earnings for the fiscal 2017 year will now be between $5.20 to $5.30 per share. It had previously been from $4.95 to $5.05 per share. The company narrowed down the reason for the increased guidance, indicating  that their beef sales segment is performing better than expected.

Shares closed the day at $65.45 which was down $0.73 on the day. However in the after market trading session, shares Rose 6% closing at $69.38 which was up $3.93 as of 8 p.m. eastern Daylight Time.

Being that shares have a 52-week high range of  $76.38, it appears that with this increased guidance, shares may possibly retest those highs and if momentum and investor interest is strong enough may actually create new 52-week highs on the year. Another reason why investors may find Tyson attractive is their Hefty dividend. The company pays a dividend of +$1.37 % annually.

Company Comments

In relation to Tyson announcing the plans to layoff 450 positions, Tom Hayes, Tyson’s President and CEO had this to say;

“We’re grateful to everyone who has contributed to the company’s success, and we’re thankful for their time with Tyson Foods.These are hard decisions, but I believe our customers and consumers will benefit from our more agile, responsive organization as we grow our business through differentiated capabilities, deliver ongoing financial fitness through continuous improvement and sustain our company and our world for future generations.”

He also added,

“We are implementing a previously announced “Financial Fitness” plan. We are creating momentum behind our continuous improvement agenda as we know we can be even more efficient operators. We are a good partner for growth for our customers and are constantly challenging ourselves to identify opportunities to create value for our consumers, customers and shareowners.”

TSN Charts  

The above price chart shows the trading action on Thursday September 28, 2017. On the left side is the intraday 5-minute price action and on the right is the after-hours 5 minute trading session which shows the huge spike in price just after the guidance was increased.

The daily price chart above, shows a beautiful uptrending stock price. The shares have respected and stayed above the 50-day simple moving average, the 21-day exponential moving average  and 8 day exponential moving average. And when shares open for trading on Friday it seems as though the share price will accelerate away from and much higher than those averages.

Company Profile

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Chicken, Beef, Pork, and Prepared Foods. The company raises and processes chickens into fresh, frozen, and value-added chicken products; processes live fed cattle and live market hogs; and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully-cooked meats.

It also supplies poultry breeding stock; sells allied products, such as hide and meats; and manufactures and markets frozen and refrigerated food products, including pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, appetizers, snacks, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks, and processed meats.

Tyson Foods, Inc. offers its products primarily under the Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Van’s, Sara Lee, Chef Pierre, Wright, Aidells, State Fair, Gallo Salame, and Golden Island brands.

 The company sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors, as well as through independent brokers and trading companies. Tyson Foods, Inc. was founded in 1935 and is headquartered in Springdale, Arkansas.-YahooFinance