Tyson Foods raised its annual revenue growth forecast and posted a better-than-expected third quarter on Monday, betting on resilient demand for meat products, especially chicken, sending its shares up about 4% before the bell, News.az reports citing CNN.
Profit margins jumped in Tyson’s chicken and prepared foods businesses during the quarter, while they worsened in its beef segment.
Tight U.S. cattle supplies continue to force Tyson and other meatpackers to pay more money to buy livestock to slaughter into beef.
However, the Springdale, Arkansas-based company has seen sustained demand for frozen meat and ready-to-eat food as consumers increasingly opted to cook meals at home in the face of growing uncertainties about tariffs and economic growth.
The Ball (NYSE:BALL) Park hotdogs maker expects fiscal 2025 revenue to grow between 2% and 3%, compared with its prior forecast of flat-to-up 1%.
"Chicken continues to provide support to the business as the company continues to face beef headwinds," brokerage Stephens said in a note.
Tyson said it expects its chicken business to earn an annual adjusted operating income of $1.3 billion to $1.4 billion, up from its previous forecast of $1 billion to $1.3 billion.
Volumes in Tyson’s beef segment were down 3.1% during the quarter ended June 28, but sales grew 6.9% as prices jumped 10%.
