Tyson Foods Earnings On Deck: (TSN) Stock Underperforming Leading In

Tyson Foods (NYSE: TSN) is set to release its next earnings this morning, before the opening bell, after a difficult year in capital markets. Tyson's stock is 9.41% YTD leading in to the print, and 15.51% over a 5 year period, leaving questions to be answered about the direction from here.

The street is expecting EPS of $0.83 for the firm, a ~10% drop on the $0.92 per share delivered this time last year. Revenue is expected to have grown modestly to $14.07billion, reflecting a 3.72% sales growth rate Y/Y.

The lead-in to this earnings call has been marked by a series of headwinds, raising concerns among investors. A recent $85 million settlement in a pork price-fixing lawsuit, coupled with a significant recall of approximately 58 million pounds of corn dogs due to contamination, has undoubtedly impacted the company's reputation and financial standing. These events follow a broader trend of challenges, including analyst downgrades and within a few cents of a new 52-week low in Friday's session.

Adding to the uncertainty, Tyson Foods reported mixed second-quarter results in May 2025, with revenue falling short of analyst expectations despite earnings exceeding estimates. This divergence highlights the pressures the company is facing in driving top-line growth while managing costs. The closure of poultry facilities in Virginia and Arkansas in early 2023, while intended to streamline operations, reflects the difficult decisions Tyson has had to make to adapt to evolving market conditions.

Price Targets

The upcoming earnings report will be critical in providing clarity on several key issues. Investors will be closely watching for updates on the financial impact of the pork price-fixing settlement and the corn dog recall. Furthermore, the company's ability to mitigate the challenges in its beef segment, including cattle shortages and rising input costs, will be a key determinant of its future profitability. The market will also be keen to hear about the progress of Tyson's initiative to remove high-fructose corn syrup and other additives from its products, and the potential impact on consumer demand.

While the prevailing sentiment surrounding Tyson Foods appears cautious, the bulls see the current challenges presenting a buying opportunity. The negative news may already be priced into the stock, and the company's long-term fundamentals remain intact. Tyson's commitment to removing controversial ingredients could resonate with health-conscious consumers, potentially boosting sales in the long run.

Moreover, the company's efforts to streamline operations and improve efficiency could yield significant cost savings, offsetting some of the negative impacts of recent events. The market may be underestimating Tyson's ability to weather the storm and emerge stronger in the coming years.

The upcoming earnings report could help put some of the argument to bed, although it is worth being prepared for significant volatility in TSN's stock price in the days and weeks ahead. The market's reaction will depend not only on the headline numbers but also on the company's guidance and outlook for the future.