Meat processor Tyson Foods Inc. (TSN) reported Monday a profit for the first quarter that more than doubled from last year, reflecting sales growth amid strong consumer demand. Both adjusted earnings per share and quarterly sales topped analysts’ expectations. The company also maintained its sales guidance range for the full-year 2022, but now expects it at the upper end of the range.
In Monday’s pre-market trade, TSN is trading at $92.46, up $4.17 or 4.72 percent.
“Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace,” said Donnie King, President and CEO of Tyson Foods.
The Springdale, Arkansas-based company reported net Income attributable to the company for the quarter of $1.12 billion or $1.90 per share, up from $467 million or $1.28 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $2.87 per share, compared to $1.94 per share in the year-ago quarter.
On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $1.90 per share for the quarter. Analysts’ estimates typically exclude special items.
Sales for the quarter edged up 0.3 percent to $12.93 billion from $10.46 billion in the same quarter last year. Analysts expected revenue of $12.18 billion for the quarter.
Beef sales volume decreased 6.2 percent to $5.0 billion, primarily due to challenging labor environment and increased supply chain constraints, partially offset by strong global demand.
Pork sales volume edged up 0.2 percent to $1.63 billion, as strong global demand was offset by the impacts associated with a challenging labor environment.
Chicken sales volume increased 3.6 percent to $3.89 billion, primarily due to increased live production and a strong demand environment.
Prepared Foods sales volume decreased 2.6 percent to $2.33 billion, due to the divestiture of our pet treats business in the fourth quarter of fiscal 2021 as well as lower production throughput primarily associated with a challenging labor and supply environment.
Looking ahead to fiscal 2022, the company projects sales to be at the upper end of the $49 billion to $51 billion range. The Street is looking for sales of $50.35 billion for the year.
The company also expects capital expenditures of approximately $2 billion for fiscal 2022.
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