J.P. Morgan analyst Ken Goldman has raised his earnings estimate for Tyson Foods’ fiscal fourth quarter to $0.33 per share from $0.23 per share, reports Meatingplace.com. The earnings estimate revision was due to better-than-expected beef and pork margins. Tyson is scheduled to report fourth-quarter earnings Nov. 16.
Goldman said his estimate for the company's chicken segment margin in the quarter remains at 2.2 percent, well below the 5.9 percent of third-quarter 2009. However, the projection for beef margin is 4.1 percent, 170 basis points above the third-quarter, on cheap cattle prices. Even cheaper hog prices, meanwhile, are expected to generate a margin of about 10 percent, far higher than the historical average.
For the current fiscal year, Goldman is lowering his estimate to $1.21 per share from $1.29 per share to account for higher corn and soybean meal costs.