Week in Preview: Tyson Foods, Analog Devices, Deere Serve Up Earnings

Among the quarterly results scheduled for this holiday-shortened week, investors may be thankful for the earnings results from Tyson Foods TSN. The Arkansas-based poultry and meat producer reported on its sustainability efforts and also was named McDonalds' MCD supplier of the year during its fiscal fourth quarter. Analysts polled by Thomson Reuters forecast earnings for that period to have doubled from a year ago to 56 cents per share. Tyson is also expected to post revenue of $7.8 billion for the three months that ended in September, which is 7.4% more than in the same period of fiscal 2009. And the consensus estimate for the full year calls for earnings of $2.08 per share (+87.0%) and revenue of $28.7 billion (+7.3%). Tyson's earnings have been better than expected in recent quarters, beating consensus estimates by as much as 24 cents per share. Tyson's long-term EPS growth forecast is 7.3%, and its forward price-earnings (P/E) ratio is 8.6, which is much less than the industry average. The PEG ratio is 1.2 and the dividend yield is 1.0%. The First Call recommendation has been to buy TSN for more than 90 days, and the mean price target is currently $20.55 per share. Shares have faced resistance from the 100-day moving average since July, slipping 5.9% in the past three months and closing Friday at $15.64. Campbell Soup CPB, which often finds a place on the holiday table, is expected to post lower earnings this week. Analog Devices Inc. Analysts anticipate that integrated circuits maker Analog Devices ADI will report that its fiscal fourth-quarter earnings grew 48.6% year-over-year to 70 cents per share. During the three months that ended in October, Analog Devices collaborated with Altera (ALTR) and continued to innovate, and revenue for that period is predicted to have jumped 32.2% to $755.8 million. For the full year, analysts foresee earnings of $2.32 per share (+58.2%) on revenue of $2.7 billion (+36.2%). Analog's EPS have grown in each of the past five quarters, topping consensus estimates each time. The long-term EPS growth forecast of 16.0% is higher than that of competitor Texas Instruments TXN. Analog's forward P/E ratio is 13.5, but that's less than the trailing P/E of 17.6, as well as the industry average. The PEG ratio is 0.8, the dividend yield is 2.4%, and the company keeps ample cash on hand to cover long-term debt. The consensus recommendation remains to buy ADI. Citigroup recommended buying the stock ahead of the earnings report. After facing resistance around $31 for much of the year, shares have climbed recently and ended the week at $35.18. Analysts are looking for earnings growth in this week's reports from Hewlett-Packard HPQ and Medtronic MDT as well. Deere & Company Deere & Co. DE is expected to be one of the biggest earnings winners this week. During the three months that ended in October, the agricultural and construction equipment giant announced the sale of its wind energy unit and relaunched its John Deere Financial unit. Continue reading the article.