Stock Analysis

Tyson Foods, Inc. Just Beat EPS By 7.2%: Here's What Analysts Think Will Happen Next

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NYSE:TSN

Last week saw the newest quarterly earnings release from Tyson Foods, Inc. (NYSE:TSN), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of US$14b were in line with what the analysts predicted, Tyson Foods surprised by delivering a statutory profit of US$1.01 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Tyson Foods

NYSE:TSN Earnings and Revenue Growth February 7th 2025

Following last week's earnings report, Tyson Foods' eleven analysts are forecasting 2025 revenues to be US$53.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 15% to US$3.40. In the lead-up to this report, the analysts had been modelling revenues of US$53.7b and earnings per share (EPS) of US$3.42 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$67.09, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Tyson Foods analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$58.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tyson Foods' revenue growth is expected to slow, with the forecast 0.07% annualised growth rate until the end of 2025 being well below the historical 5.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tyson Foods is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Tyson Foods. Long-term earnings power is much more important than next year's profits. We have forecasts for Tyson Foods going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Tyson Foods has 1 warning sign we think you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if Tyson Foods might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.