Tyson Foods Beats Profit Estimates After Earnings ReportTyson Foods, ( NYSE:TSN ) the largest US meat company by sales, has surpassed Wall Street expectations for second-quarter profit as it begins to reduce costs by shutting some chicken processing plants. The company's adjusted earnings of 62 cents per share for the second quarter were higher than analysts' average estimate of 39 cents. However, Tyson ( NYSE:TSN ) has been struggling with slowing demand over the last few quarters. Price-conscious customers cut back on expensive purchases and look for affordable options amid high food prices and borrowing costs.
Tyson's second-quarter net sales fell 0.5% to $13.07 billion, compared with estimates of $13.16 billion. Sales in the chicken segment, which struggled with excess supply during 2023, were down 8.3% in the quarter, even though prices fell 2.1%. Volumes dropped by 6.1%. However, volumes at the beef segment, its largest, grew for the first time in five quarters, logging a 2.8% increase. The company's pork segment also saw volumes increase by 2.9%.
The operating margin in Tyson's beef business dropped by 0.7% in the quarter, as the business has grappled with limited U.S. cattle supplies since last year. The company expects total sales to be flat in fiscal 2024, compared with the previous year's $52.88 billion.
Adjusted net income in the three months ended March 30 was 62 cents a share, exceeding even the highest of analyst estimates compiled by Bloomberg. Tyson ( NYSE:TSN ) is now making $1.4 billion to $1.8 billion in operating income in fiscal 2024, up from a previous forecast range between $1 billion and $1.5 billion. Most of Tyson's second-quarter operating profits came from its prepared foods business.
Technical Outlook
Tyson ( NYSE:TSN ) Closed Friday's trading session on a clean slate up by 1.76% with a Relative Strength Index (RSI) of 67.97 which is perfect for a good start for the week.
Tyson
Long Tyson TSNThis is a weird one for me. Saw a x post about them heavily investing in bug proteins and had to check the chart out. Monster megaphone pattern. Beautiful chart. F the bugs but have to punt. Buying some here for the culture. At this time I am allocating most of my capitol now to btc and high beta crypto shit coins and stocks ill probably lose everything on....but this is to good a long not to get in on. Not advise, good luck.
BYND- Is there more meat on the bone?BYND has had a good trend up over about 15 days rising about 40% over the interval.
The question that arises is whether the trend is now near to a top and so consolidation or
reverse or instead can it continue higher? The indicators may give a hint on the 4 hr
chart which being a higher time frame has better reliability than a low TF. About a week ago
price crossed over the mean VWAP anchored to the beginning of the year. This demonstrates
bullish momentum and concurs with the other indicators. Professional traders see the
VWAP as an " over/under" of sorts something well known to sports betters.
The Lorentzian Indicator which uses machine learning an many parameters including moving
averages, average directional index, RSI and CCI printed a buy signal on June 23rd and has not
yet printed a corresponding sell signal. The MTF RSI by Chris Moody shows both TFs
with RSIs in the 65-70 range showing BYND not to be overbought and overvalued. The MACD
indicator shows the K and D lines in parallel well above the positive histogram. There is no
the suggestion of an impending line cross. Fundamentally, BYND products have not inflated to
the extent of beef, port and chicken. Overall, I see an opportunity for a long trade.
I will drill down to the 1 to 5 minute time frames and look for a pivot low. The target is about
50% upside at $22.5 the pivot high of this year in March. I will take partia profits along the
way while raising the stop loss in lockstep with those profits as an effective risk management
exercise.
Tyson Foods (TYS) - Wedge BreakoutTyson food has been recently hit with supply chain issues and is currently ranging in a tight wedge.
We could see one last test of the upper band, however, the probable play is a breakout to the downside.
Note: Pay attention to $TYS news for the determination of your exit strategy as things can easily get worse or better.
Stop loss above the upper band.
Tyson Foods - Positive repeats in RSI, MACD trends into 2020 Hello team,
Notice the price action, RSI and MACD levels during the previous time period within the black bars. These moves mimic the recent action in Tyson Foods showing me a strong technical tailwind for Tyson going into 2020 and earnings in Jan.
Looks like Tyson will test the highs in the next Month and should breakthrough.
Fundamentally, news has come out that Tyson is opening more plants across the globe while also scoring a potential contract to export meat to China. This could provide a nice boost during the next earnings call.
Tyson has a trailing P/E of 16.72 much lower than the SnP 500 - 20 and Consumer staples group - 22. This implies Tyson foods can ride the wave of global growth to a plus 25% gain in the next couple of years. I believe this breakout will start in the first months of 2020. Being a consumer staple stock with international reach, Tyson foods provides an interesting, safe and profitable trade potentially. The critics will talk about swinging commodity prices which Tyson has dealt with for decades. More so the global demand for beef and chicken will only increase as technology drives access to population-dense markets. Capitalizing on that might be difficult though...
Either way price action looks good and as Jim Cramer said "Tyson is feeding the world"
I am long Tyson and think it will be up 10%+ in 2020.
TYSON: Estimated to Beat Earnings - Likely Going to >90.00Tyson appears to be gearing up for a break-out finally after earnings this coming week from its latest products like plant based chicken nuggets and other similar products appearing to give it a nice boost.
Similar to Luckin Coffee (LK), the stock failed breakouts 4-5 times on different occasions. In this case, just like LK, it appears a breakout is coming shortly. I suspect wherever Tyson lies just before earnings, it will get a +10-12.00 boost and continue to inch its way closer to 100.00 within a week after earnings.
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Only time will tell. A good bet to buy pre-earnings.
Keep in mind that just because bearish volume increases before a company posts earnings, that is not necessarily an indicator of missed revenue - but rather, the opposite for a more volatile and bigger increase post-earnings for the 'big' money players.
- zSplit
Tyson technical/fundamental bull analysisFundamental analysis
With all the hype around Beyond Meat meatless burgers. Tyson (TSN) who is a now official competitor on this semi-new (not only for vegetarian) market could be a gainer.
Technical analysis
RSI @48 trending higher (could be stronger)
OBV confirming at all time high
We made a head and shoulders (shown on chart), with a positive uptrend on the support level.
Price target as well as stop-loss limit are drawn in the chart.
Happy trading!
dorfmanmaster