Tyson Foods, Inc. TSN 0.11% is set to release Q2 earnings on August 8, and CLSA analyst Jeremy Scott has some high hopes for the food giant. CLSA is calling for EPS of $1.06, above consensus expectations of $1.03. Scott notes that Tyson’s earnings power has been driven by robust 11.5 percent chicken margins and improving 2.5 percent beef margins.

“We also expect a volume rebound in Prepared Foods at retail from the company’s pricing investments, which should help sustain margins,“ he explains.

Chicken margins of 11.5 percent are historically high for Tyson, but Scott believes that number could actually be on the low side. Last quarter, chicken margins came in at 12.7 percent, and Scott believes many of the same market factors driving high margins are still in play.

“The near-term outlook for chicken margins has improved…

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