Analysts: Drought Weighs on Tyson Profits
Meat processing margins remain under pressure for Tyson Foods Inc. as the company began its final quarter of fiscal 2012 on July 1.
Tyson will report its third quarter results Aug. 5. and while analysts expect the meat giant improved its recent profits from a year ago, they remain cautious about the balance of this year amid soaring grain costs related to the drought-stricken Midwest.
BB&T Capital Markets analyst Heather Jones, said processing fundamentals “played out better than we had anticipated” which allowed her to raise the third quarter estimate to 51 cents a share, from 47 cents per share. Wall Street earning’s consensus of 54 cents per share in the third quarter amounts to an expected $161.68 million in net profits, up 17.3% from the prior year.
That said, Jones and other analysts that follow the company foresee a weaker fourth quarter which prompted BB&T to trim Tyson’s full year profits to $1.93 per share, some 3% lower than originally forecast, according to a recent investor note by Jones. Click here to read the full story from our partners at TheCityWire.com.