Strong Demand for Chicken in the U.S. Tyson Foods Q3 Performance Exceeds Expectations and Raises Full-Year Guidance
Tyson Foods announced better-than-expected third-quarter results, with sales reaching $13.884 billion, a year-on-year increase of 4%; adjusted earnings per share were $0.91, a year-on-year increase of 5%. The company raised its operating profit guidance for fiscal year 2025, expecting it to be between $2.1 billion and $2.3 billion, benefiting from strong chicken demand and low feed costs. Despite ongoing losses in the beef business, the adjusted operating profit for the chicken segment was $345 million, marking the best performance since 2016. On Monday, pre-market trading saw Tyson Foods' stock price rise by 4%
According to the Zhitong Finance APP, Tyson Foods (TSN.US) reported better-than-expected quarterly profits and raised its annual profit guidance due to the continued prosperity of its chicken business offsetting losses in its beef business. The financial report showed that Tyson Foods' sales for the third fiscal quarter ending in June reached $13.884 billion, a year-on-year increase of 4%, exceeding market expectations; adjusted earnings per share were $0.91, a year-on-year increase of 5%, also better than market expectations.
Tyson Foods stated in a statement that it expects operating profit for fiscal year 2025, excluding certain items, to be between $2.1 billion and $2.3 billion, which is $100 million higher than the midpoint of the previous guidance range. The adjusted profit for its chicken segment for the full year is also expected to be higher than previously anticipated.
The upward revision of guidance highlights that strong chicken demand and low feed costs are helping Tyson Foods withstand the expanding losses in its beef business, which has been hit hard by a severe shortage of cattle in the United States.
The growth in Tyson Foods' third fiscal quarter performance was mainly driven by profits from the chicken and prepared foods segments.
Data shows that the adjusted operating profit for the chicken segment in the third fiscal quarter was $345 million, the best performance for the same period since 2016, and higher than analysts' expectations.
Meanwhile, the beef segment reported a loss of $151 million after excluding certain items. This marks the seventh consecutive quarter of losses for this segment, which is the company's largest single business loss.
As of the time of writing, Tyson Foods' stock price rose 4% in pre-market trading on Monday
