Tyson Foods (TSN 66.16, +2.86) has climbed 4.5% after reporting better than expected results and guiding ahead of expectations.
The food company reported above-consensus third quarter earnings of $1.28 per share on a 4.8% year-over-year increase in revenue to $9.85 billion, which also exceeded expectations.
Looking at the segment breakdown, beef sales rose 5.7% to $4.00 billion as volume increased 0.4% and average prices rose 5.3%. Segment operating margin improved to 3.7% from 2.4%.
Pork sales grew 4.0% to $1.32 billion as volume grew 0.6% and average prices increased 3.3%. Segment operating margin increased to 10.3% from 9.6%.
Chicken sales increased 4.6% to $2.87 billion with volume growing 1.6% and average prices increasing 2.9%. Operating margin declined to 10.4% from 13.9%. Fires at two plants resulted in operational disruptions and decreased rendered product sales.
Prepared foods sales grew 7.5% to $1.94 billion as volume increased 2.4% and average prices rose 4.9%. Operating margin declined to 10.0% from 10.9%.
Other sales fell 14.1% to $85 million. Volume fell 11.9% and average prices declined 1.9%.
Looking ahead, the company expects that revenue for the full year will reach $41.00 billion thanks to higher sales in legacy businesses, higher prices in the chicken segment, and a $1.15 billion contribution to sales from the acquisition of AdvancePierre Foods. The acquisition is expected to provide $200 million in cumulative net synergies within three years. Tyson's guidance is ahead of current market expectations.