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Tyson Foods (TSN) Q4 Earnings: Will the Stock Disappoint?

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Tyson Foods, Inc. (TSN - Free Report) is slated to release fourth-quarter fiscal 2016 results on Nov 21. The question is whether this producer, distributor and marketer of chicken, beef, pork and prepared foods will be able to deliver a positive earnings surprise in the quarter to be reported.

Notably, in the trailing four quarters, the company has outperformed the Zacks Consensus Estimate by an average 12.2%. In first, second and third-quarter fiscal 2016, the company had pulled a positive surprise of 32.2%, 11.5% and 13.1%, respectively. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Tyson Foods is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tyson Foods has an Earnings ESP of -4.03% as the Most Accurate estimate stands at $1.19, while the Zacks Consensus Estimate is pegged at $1.24. Tyson Foods’ Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Factors Influencing this Quarter

Tyson’s business revolves around beef, pork and chicken as well as processed foods. The processed food business has been showcasing a decent performance. Moreover, the Hillshire Brands packaged foods buyout and healthy liquidity impart strength to the stock. However, the sluggish beef segment remains a concern. Moreover, macroeconomic headwinds are to an extent weighing upon its performance.

TYSON FOODS A Price, Consensus and EPS Surprise

TYSON FOODS A Price, Consensus and EPS Surprise | TYSON FOODS A Quote

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Hibbett Sports, Inc. has an Earnings ESP of +4.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +4.26% and a Zacks Rank #2.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #2.

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