Tyson Foods (TSN) Rises as Earnings Top Estimates

NEW YORK (TheStreet) -- Tyson Foods  (TSN) was rising 6.94% to $36.88 after the chicken, beef and pork provider reported first-quarter profit that surpassed analysts' expectations.

Tyson reported first-quarter profit of $254 million, or 75 cents a share, up from $173 million, or 48 cents a share, in the same period a year earlier. Sales also increased 4.7% to $8.76 billion. Analysts surveyed by Thomson Reuters expected earnings per share of 63 cents and revenue of $8.75 billion.

The company noted in a conference call with analysts on Friday, though, that it would slow the pace of its expansion in China after food-safety concerns decreased the demand for chicken in the nation, according to The Wall Street Journal. CEO Donnie Smith said on the call that Tyson no longer expects its operations in China to break even by the end of fiscal 2014.

TheStreet Ratings team rates TYSON FOODS INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about its recommendation:

"We rate TYSON FOODS INC (TSN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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