Tyson Foods, Inc. (NYSE:TSN) shares traded higher on Tuesday after the company released its fourth-quarter and fiscal 2025 results on November 10.
Operating cash flow came in at $2.16 billion, declining $435 million from the prior year, while free cash flow fell $281 million to $1.18 billion.
Analyst View: Chicken Strength to Offset Beef Weakness
Goldman Sachs analyst Leah Jordan reiterated the Buy rating on Tyson Foods, raising the price forecast from $63 to $65.
Also Read: Tyson's Beef Problems Aren't Going Away Anytime Soon
Jordan said confidence in Tyson's diversified protein model remains.
Strength in chicken should offset beef headwinds, and operational execution is improving.
Looking ahead, Tyson expects fiscal 2026 sales to increase between 2% and 4% to $55.53 billion and $56.62 billion, compared with analyst estimates of $54.73 billion.
Given this outlook, the analyst expects more normalized seasonality, with relative strength in the first and third quarters.
Jordan sees continued tailwinds from strong chicken demand given its relative value proposition.
He also cites a mix shift toward value-added products and incremental efficiency improvements.
Feed costs should remain relatively stable, supporting margins across segments.
Jordan said higher input costs pressured prepared foods profitability in the third quarter.
Prepared Foods AOI fell 7.8% year over year to $189 million, reversing last quarter's 21% growth.
He noted raw material inflation drove the decline, similar to peer trends.
Jordan expects pricing to catch up within one to two quarters under contracts and negotiations.
He remains encouraged by solid demand, with revenue up 3.0% and improving volumes.
Estimates
After the fourth-quarter results and fiscal year 2026 guidance, the analyst revised fiscal year 2026–2027 earnings per share. Estimates move to $3.85 and $4.47, down from $3.93 and $4.65, respectively.
He cited a weaker beef outlook and higher interest expense as key drivers. Jordan also introduced a fiscal year 2028 EPS estimate of $5.53.
Price Action: TSN shares are trading higher by 2.55% to $55.26 at last check Tuesday.
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