Tyson Foods (NYSE:TSN) shares jumped nearly 5% in the early session today after the food products provider posted a resilient performance for the first quarter. With a marginal year-over-year gain of 0.4%, revenue of $13.32 billion landed largely in line with estimates. EPS of $0.60 outpaced expectations by a healthy margin of $0.19.
In Q1, sales in the Beef segment trended higher on the back of higher pricing. On the other hand, a combination of lower volumes and pricing impacted sales in the Chicken segment. Pork sales remained largely unchanged as higher volumes were offset by a decrease in pricing.
For Fiscal Year 2024, Tyson Foods expects relatively flat sales growth. Capital expenditures are seen hovering between $1 billion and $1.5 billion. The company also anticipates an adjusted effective tax rate in the range of 23% to 24% for the year.
What Is the Price Target for TSN?
Overall, the Street has a Hold consensus rating on Tyson Foods and the average TSN price target of $49.88 implies a potential downside of 11.5% in the stock. That’s on top of a nearly 13% decline in the company’s share price over the past year.
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