A "Triumph" of a Quarter for Tyson (TSN) - DA Davidson
The analyst noted: Tyson's Q3 operating EPS grew 38.5% to $0.69, compared to our $0.50 estimate and the 11-analyst Street mean of $0.60. Net sales of $8.73 billion climbed 5.1%, compared to our expectation of $8.41 billion and the Street consensus of $8.65 billion. Price grew 3.7% and volumes increased 2.2%. Total operating margin was 4.8%, above our forecast of 3.7%.
"This was a triumph of a quarter for Tyson and the company is projecting strong improvement ahead," Ramey commented. "Management likes the tone of the business and the position that Tyson occupies. We will see better margins in Chicken and stronger exports in Beef. The company's cash flow should be enormous as working capital needs decline on lower corn inputs. This is a wonderful time for Tyson and the best shape this company has been in in 15 years in our opinion."
The firm increasing FY13 estimate to $2.20, previously $1.95, while FY14 estimate moves up a dime to $2.60.
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Shares of Tyson closed at $28.51 yesterday, with a 52 week range of $14.07-$28.58.