Shares of meat processor Tyson Foods (NYSE:TSN) fell in pre-market trading after the company reported its fourth-quarter results. Its adjusted earnings slipped by 77% year-over-year to $0.37 per share. However, this was still better than analysts’ consensus estimate of $0.29 per share.
The company’s sales declined by 2.8% year-over-year to $13.3 billion, below analysts’ expectations of $13.7 billion.
Donnie King, President & CEO of Tyson Foods, commented, “While economic headwinds persist, we are moving in the right direction and managing what we can control. The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income.”
In addition, Tyson Foods’ Board of Directors increased the quarterly dividend to $0.49 per share on its Class A common stock and $0.441 per share on its Class B common stock. These will be payable on March 15, 2024, to shareholders of record at the close of business on March 1.
Looking forward, in FY24, the company expects its revenues to be flat year-over-year and anticipates spending between $1 billion and $1.5 billion in capex.
What is the Price Target for TSN?
Analysts remain bearish about TSN stock, with a Moderate Sell consensus rating based on two Sells. The average TSN price target is $47, meaning that the company is fairly valued at current levels. This comes after a 24% decline on a year-to-date basis.
