Join now for FREE unlimited access to Reuters.com
May 9 (Reuters) – Tyson Foods Inc (TSN.N) raised its full-year sales outlook on Monday after soaring meat prices helped the U.S. processor beat its quarterly revenue estimates and profits.
Shares jumped about 2% in premarket trading.
Meatpackers have come under scrutiny from the White House and Congress due to rising meat prices, with the White House blaming the lack of competition in the industry for being at the cause of these increases. Read more
Companies like Tyson say they have raised prices to offset rising costs for labor and goods like animal feed, which have been accelerated by the war in Ukraine.
“While we continue to see inflationary pressures in the supply chain, we are working to reduce costs,” chief executive Donnie King said in a statement.
Springdale, Arkansas-based Tyson now expects annual sales of between $52 billion and $54 billion, down from its previous estimate for the upper end of a $49 billion to $51 billion range.
Analysts on average expect a figure of $51.79 billion, according to Refinitiv IBES data.
Tyson said average prices for its beef in the quarter that ended April 2 were up 23.8% from a year earlier, while chicken prices were up 14.4% and pork prices by 10.8%. Sales volumes remained almost flat in the beef and chicken sectors and fell 4.8% in the pork sector, according to the company.
Quarterly sales reached $13.12 billion in the quarter, up from $11.30 billion a year earlier, beating expectations of $12.85 billion. Tyson reported adjusted earnings per share of $2.29, better than expectations of $1.91.
Reporting by Deborah Sophia in Bengaluru and Tom Polansek in Chicago; Editing by Aditya Soni
Our standards: The Thomson Reuters Trust Principles.