Zacks Investment Research | May 03, 2016 09:10PM ET
Tyson Foods, Inc. (NYSE:TSN) is set to report second-quarter fiscal 2016 results on May 9. Last quarter, the company posted a positive earnings surprise of 32.18%.
Basically, the company reported positive surprises in two of the quarters, reaching the average surprise for the trailing four quarters to 2.84%.
Let's see how things are shaping up for this announcement.
Factors at Play
Tyson Foods’ regular product innovations and strong momentum in most business lines have been driving sales for some time now.
Further, thegeneral shift of demand from red meat to low-calorie chicken and processed chicken products among health conscious consumers is helping the company boost sales in its chicken segment. Such factors should have a favorable impact on the second-quarter results.
Toward the end of fiscal 2015, Tyson Foods rolled out Hillshire Snacking nationally. It was well received by consumers contributed to category growth by driving new consumers into the Snacking segment. This should contribute to the top line.
Further, the integration of Hillshire Co. brands completed last fiscal is expected to boost profits in the quarter.
Earnings Whispers
Our proven model does not conclusively show that Tyson Foods is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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