Tyson Foods EPS Growth Signals Potential Upside Ahead

Earnings anticipation for Tyson Foods shows a promising 13% increase in EPS, suggesting potential stock price appreciation. Analysts maintain a cautious ‘Hold’ rating for TSN stock as challenges remain.

Date: 10-01-2025

AI Rating: 6

Overview of Earnings Performance
Tyson Foods is expected to report a profit of $0.78 per share for Q1, representing a 13% increase compared to $0.69 in the same period last year. The company has consistently exceeded Wall Street's adjusted EPS projections, which is a positive indicator for investor confidence.

Q4 Earnings Results
In the fourth quarter, Tyson reported an EPS of $0.92, surpassing consensus estimates by a significant margin of 43.8%. This success was attributed to higher pricing and operational efficiencies, reflecting improved profitability year-over-year.

Outlook for Fiscal 2025
Looking forward, analysts project an adjusted EPS of $3.51 for fiscal 2025, achieving a 13.2% rise from $3.10 in fiscal 2024. This upward trajectory in EPS could instill greater investor confidence, despite the company facing some operational challenges.

Market Performance Comparison
Tyson Foods stock has notably underperformed the S&P 500 Index. While the S&P increased by 24.2% over the last year, TSN recorded only a 1% rise, trailing behind the Consumer Staples Select Sector SPDR Fund, which grew by 6.7%.

Challenges Faced
The company continues to grapple with high cattle costs, plant closures, and competitive pressures, which remain concerns for investors. Despite these obstacles, Tyson’s shares surged over 6% following the Q4 earnings report. The company posted $13.6 billion in revenue, an increase of 1.6% year-over-year, and recorded an adjusted operating margin of 3.8%.

Future Projections
For fiscal 2025, the USDA forecasts an increase in domestic protein production. Tyson projects an adjusted operating income between $1.8 billion and $2.2 billion, although revenue is expected to remain flat or decline by up to 1%.

Analysts' Ratings
The consensus rating for Tyson Foods stock is ‘Hold,’ indicating caution among analysts, with a slight potential upside of 15% based on the average analyst price target of $63.78. This mixed outlook demonstrates both confidence in EPS growth and recognition of ongoing challenges.

Stocks: TSN