Meat & Livestock News

Stephens Inc. Analyst Tweaks Profit Forecasts for Poultry Firms Tyson Foods and Pilgrim’s Pride

Benjamin Bienvenu, a stock analyst at Stephens Inc., has fine-tuned his profit predictions for key players in the poultry sector, Tyson Foods and Pilgrim’s Pride. These adjustments were detailed in a thorough commodity analysis and stem from recent upticks in operational efficiencies for both corporations.

Tyson Foods: Altered Profit Expectations

Bienvenu has nudged up his earnings-per-share (EPS) outlook for Tyson Foods for the quarter that wrapped up on September 30, 2023. He now envisions an EPS of $0.30, a slight climb from the former $0.25. Across the full fiscal stretch of 2023, the EPS is now slated to touch $1.27, a modest hike from the erstwhile $1.21.

Yet, the EPS outlook for the fiscal year 2024 has been trimmed a bit to $2.97, a dip from the initial $3. Bienvenu pinpoints ongoing hurdles in Tyson’s beef division as a complicating element for the firm’s comprehensive performance in 2024.

Nonetheless, he posits that the rock-bottom phase might be past, especially if beef profit margins undergo added strain due to elevated heifer retention rates, which could hint at a beef sector rebound.

Pilgrim’s Pride: Upbeat Profit Revisions

For Pilgrim’s Pride, Bienvenu has elevated the EPS for the quarter that concluded in September to $0.41, a bump from the prior $0.35. Across the entire fiscal year that ends on December 31, the EPS is now pegged at $1.37, a rise from the former $1.19.

Looking into fiscal 2024, Stephens Inc. has also nudged up its EPS estimate for Pilgrim’s Pride to $2.38, a lift from the preceding $2.20. Bienvenu attributes this optimistic tweak to a bolstering operational landscape in the chicken arena, which he contends will fortify the firm’s 2024 financials.

To encapsulate, stock analyst Benjamin Bienvenu anticipates rosier profit scenarios for both Tyson Foods and Pilgrim’s Pride, primarily owing to operational upticks in the poultry arena.

While Tyson Foods grapples with uncertainties in its beef segment, Pilgrim’s Pride appears set for a financially stronger trajectory in the upcoming years.