Tyson Foods Inc. (NYSE: TSN) reported its financial results for the third quarter on Monday that beat Wall Street estimates on an increase in foodservice volume as easing COVID-19 restrictions helped the restaurant industry recover in recent months. Shares of the company are a little under 10% up on Monday morning.
Third-quarter financial results
Tyson Foods said its net income came in at $749 million in the third quarter that translates to $2.05 per share. In the comparable quarter of last year, its net income was capped at $526 million or $1.44 per share.
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On an adjusted basis, the meat processor earned $2.70 a share. Tyson Foods generated $12.48 billion of sales in the recent quarter – an increase from $10 billion in Q3 of the previous year. According to FactSet, experts had forecast $11.46 billion in sales and $1.61 of adjusted EPS.
Earlier this year, Tyson Foods’ CEO resigned after only eight months on the job.
Tyson Foods raises full-year revenue guidance
Tyson Foods valued COVID-related costs in the third quarter at roughly $55 million. According to CEO Donnie King, the Arkansas-based company bumped up its beef production in Q3 to meet demand, both in the U.S. and internationally.
According to CEO Donnie King, the cost of raw materials is increasing faster than the company can hike prices for chicken and prepared foods. Demand for beef, both in the U.S. and internationally, was strong in Q3 and drove confidence to raise full-year guidance for revenue.
Tyson recently resorted to raising prices in a bid to offset inflation. While the revised prices are so far applicable to restaurant customers only, retail ones will be treated the same way from September 5th.
In separate news, U.S. Foods also said it swung to profit in the fiscal second quarter.
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