Tyson Foods First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tyson Foods (NYSE:TSN) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  Tyson Foods and its subsidiaries produce, distribute and market chicken, beef, pork, prepared foods and related products.

Tyson Foods Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 38 cents per share, a decline of 9.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 30 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 38 cents during the last month. Analysts are projecting profit to rise by 1.6% versus last year to $1.88.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 55 cents per share against a mean estimate of net income of 43 cents per share. In the third quarter of the last fiscal year, it missed forecasts by 5 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 90.7% to $185 million (51 cents a share) from $97 million (26 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 0.4% to $8.37 billion from $8.4 billion.

Here’s how Tyson Foods traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.25 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 27.4% to $2.83 billion while assets rose 8% to $5.4 billion.

Wall St. Revenue Expectations: On average, analysts predict $8.6 billion in revenue this quarter, a rise of 3.2% from the year-ago quarter. Analysts are forecasting total revenue of $34.57 billion for the year, a rise of 3.9% from last year’s revenue of $33.28 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 9.4% in the first quarter of the last fiscal year, 3.4% in the second quarter of the last fiscal year and 0.7%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

Heading into this earnings announcement, net income has dropped 3.4% on average for the last four quarters.

Analyst Ratings: With seven analysts rating the stock as a buy, four rating it as a sell and three rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)