Tyson Foods
A global supplier of beef, chicken, pork and prepared foods, Tyson Foods Inc. (NYSE: TSN) stock has shed nearly a third of its share price over the past 12 months. Late last month, the company announced that it would cut 10% of its jobs at corporate headquarters in Arkansas and 15% of its senior leadership staff, including vice presidents and senior vice presidents. Cutting costs and finding better leaders are expected to lead to more efficient (and profitable) operations. Tyson reports results on Monday morning.
Of 13 analysts covering the stock, four have ratings of Buy or Strong Buy and seven have Hold ratings. At a share price of around $60.50, the implied gain based on a median price target of $65.00 is 7.4%. At the high price target of $103.00, the implied gain is 70.2%.
For Tyson’s second quarter of fiscal 2023, analysts expect revenue of $13.62 billion, up 2.7% sequentially and 2.6% higher year over year. Adjusted EPS are forecast at $0.80, down 5.9% sequentially and down 65% year over year. For the full fiscal year ending in September, Tyson is expected to report EPS of $4.34, down 50.2%, on sales of $55.05 billion, up 3.3%. In the December quarter, EPS dropped by 70% year over year.
Tyson trades at 13.9 times expected 2023 EPS, 10.8 times estimated 2024 earnings of $5.60 and 8.9 times estimated 2025 earnings of $6.79 per share. The stock’s 52-week range is $55.80 to $94.77. The company pays an annual dividend of $1.92 (yield of 3.08%). The total shareholder return over the past year was negative 30.99%.
Warner Bros. Discovery
Media company Warner Bros. Discovery Inc. (NASDAQ: WBD), created following the April 2022 merger of Discovery with AT&T’s WarnerMedia, posted a 52-week low in late December and has managed to rise by about 35% from that trough. Look for the earnings report on Friday morning.
Deadline reported earlier this week that the company had reached a licensing deal with Canada’s Bell Media for streaming rights in Canada to Warner properties like Harry Potter, Game of Thrones, the DC Universe and HBO (soon to be called Max) content. Programming will be streamed on Bell Media’s Crave network.
Among 26 analysts covering the stock, there are nine Hold ratings and 16 ratings of Buy or Strong Buy. At a share price of around $12.50, the implied upside based on a median price target of $19.50 is 56%. At the high price target of $36.00, the implied gain is 188%.
First-quarter revenue is forecast at $10.77 billion, down 2.2% sequentially but up from $3.16 billion year over year for Discovery only. Analysts are looking for an adjusted loss of $0.12 per share. The estimates for the full year call for a loss per share of $0.28 on sales of $43.60 billion. For 2022, the company reported revenue of $33.82 billion and a loss per share of $1.67.
Warner Bros. Discovery stock trades at 28.8 times estimated 2024 earnings of $0.45 and 16.2 times estimated 2025 earnings of $0.79 per share. The stock’s post-merger range is $8.82 to $20.08. The company does not pay a dividend, and the total shareholder return for the past year is negative 33.42%.
Originally published at 24/7 Wall St.
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