Shares in Tyson Foods (TSN) punched higher after it hiked its annual sales forecast on soaring demand for protein-filled meals.
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Results Beat Sales and Earnings Estimates
The group, whose brands include Ball Park hot dogs and Jimmy Dean griddle cakes, said more people going out to eat at restaurants, as well as sustained eating-at-home habits had helped first quarter sales rise 2.3% to $13.6 billion. This beat estimates of around $13.4 billion.
Its earnings per share came in at $1.14, compared to $0.69 in the year-ago quarter, and again looking tastier than estimates of around $0.79.
“Our best quarterly performance in more than two years reflects improved execution across the business, including exceptional results in chicken. Consumers remain focused on adding protein to their diets,” said Donnie King, President & CEO of Tyson Foods.
Strong Outlook Despite Tariffs Uncertainty
The group expects demand to continue and now sees fiscal 2025 sales to be flat to up 1%, compared with previous flat to down 1% estimates. It also lifted its annual adjusted operating income forecast range to between $1.9 billion and $2.3 billion, from $1.8 billion to $2.2 billion. This includes any potential impact from President Trump’s tariffs spree, particularly on the sale of U.S. pork and chicken to Mexico and potentially higher cattle prices. “We’ve been preparing for this,” King said.
Is TSN a Good Stock to Buy?
On TipRanks, TSN has a Hold Consensus based on 2 Buy, 4 Hold and 1 Sell rating. Its highest price target is $75. TSN stock’s consensus price target is $64.57 implying an 12.35% upside.
