Tyson Foods (TSN) Stock Skips Ahead on Strong Q2 Results, Upbeat Outlook
NEW YORK (TheStreet) -- Tyson Foods (TSN) - Get Report shares are jumping by 3.79% to $69.80 in Monday's pre-market trading session, after the beef and poultry producer released better-than-expected fiscal 2016 second quarter results earlier today and lifted its full year guidance.
Adjusted earnings of $1.07 a share handily topped Wall Street's forecasts of 95 cents a share and were higher than the 75 cents a share the company earned the previous year. Tyson's quarterly profits were largely helped by lower feed and livestock costs.
Revenue for the recent period totaled $9.2 billion, also beating projections of $9.04 billion. A year ago, the company earned $10 billion.
"Our business continues to perform very well, delivering record second quarter operating income and return on sales, in what is typically the most challenging quarter of our fiscal year," CEO Donnie Smith stated.
The company added that the strong momentum is expected to continue into the second half of the year. As a result, it raised its full year adjusted earnings guidance to between the range of $4.20 to $4.30 a share, compared to its previous outlook of $3.85 to $3.95 a share.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A+.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: TSN
