Tyson Foods beats quarterly profit estimates
Estimates beat on strong chicken demand
By: Tyson Foods beat Wall Street expectations for second-quarter profit on Monday, driven by increased demand for its chicken products and lower costs, reported Reuters.
The company witnessed sustained demand for its frozen meat and ready-to-eat food as consumers increasingly preferred eating at home.
Robust growth in Tyson's chicken segment at its restaurant and food service channels helped the company offset stubbornly high beef prices due to low US cattle supplies.
On an adjusted basis, it earned 92 cents per share for the quarter ended March 29, compared with analysts' estimate of 82 cents, according to data compiled by LSEG.
Quarterly net sales of $13.07 billion missed analysts' estimate of $13.14 billion.
Legal contingency accruals reduced sales by $343 million in the quarter, Tyson said.
Sales in its beef segment, the company's largest, were up 4.9% in the quarter. Prices were up 8.2%, while volumes declined 1.4%.
Adjusted operating margin at its chicken segment rose to 7.5% from 3.9% in the year-ago quarter, while its pork business rose to 3.7% from 2.2% a year ago.
6 May 2025
2
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