Meat producer Tyson Foods exceeded third-quarter earnings estimates as the company reported lower-than-expected revenues. In addition, Tyson announced the nomination of a new CEO.
Tyson Foods (TSN) reported earnings of $1.40 per share beating the consensus estimate of $0.94. However, its revenues of $10 billion missed Wall Street expectations of $10.5 billion.
Tyson CEO Noel White stated during the earnings call, “Within each of our segments, we absorbed higher-than-normal operating costs related to COVID-19. Nonetheless, Tyson delivered strong results during the third quarter led by strength in our Beef and Pork segments.” Despite near-term challenges, Tyson CEO expects a strong long-term outlook for the company.
Separately, the company also announced that its CEO White will step down in October and will continue to serve as executive vice-chairman. Dean Banks will replace White as Tyson’s new CEO on Oct. 3 and will continue to serve as the president of the company.
On July 22, Bernstein analyst Alexia Howard, who has a Buy rating on the stock, said that she forecast “a better-than-expected quarter, helped in part by a recovery in beef and pork production levels.”
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 5 Buys and 5 Holds. The average price target of $74.75 implies an upside potential of about 20%. (See TSN stock analysis on TipRanks).
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