Tyson shares fall, despite analysts raising earnings guidance

A couple of analysts who follow Tyson Foods adjusted their earnings up after yesterday’s conference call (May 5) on the meat giant’s financial results for the second quarter ending March 31.

But, Tyson shares remain in sell off mode on Tuesday (May 6) closing at $38.25, down 19 cents. Shares got as low as $38, before rebounding slightly at the close. Tyson shares are down nearly 10% in the past two days after narrowly missing analysts’ net income estimates.

J.P. Morgan analyst Ken Goldman, raised his fiscal 2014 earning guidance to $3 after reevaluating Tyson’s second quarter results. He did guide downward for 2015 to $2.83, which he related to some recent upward movement in corn futures.

Kenneth Zaslow, analyst for BMO Capital Markets, also raised his 2014 guidance to $2.93, up from $2.89. Unlike Goldman, he believes 2015 will be better for Tyson Foods than 2014.

Tyson CEO Donnie Smith also said 2015 earnings will be 10% better than 2014, based on his inside knowledge and best calculations.

Smith’s optimism did not sway Brett Hundley, an equity analyst with BB&T Capital Markets. Hundley lowered his fiscal 2014 earnings to $2.90, from $2.95. He also reduced 2015 guidance to $3.16.

Hundley noted to investors that Tyson is proving its ability to navigate differing market environments. He also expects Tyson’s strong balance sheet will allow it to compete for value-enhancing acquisitions.

Tyson Foods also announced a quarterly dividend of 7.5 cents per Class A share and 6.75 cents to Class B shareholders. The dividend is payable Sept. 15 to shareholders of record at the close of business on Aug. 29.