Reuters – US meat processor Tyson Foods’ quarterly earnings and revenue topped analysts’ forecasts, as its chicken and beef businesses benefited from strong demand as well as lower costs to buy animal feed.
Shares of Tyson, the maker of Ball Park hot dogs, rose nearly 4% to $77 in pre-market trading on Monday.
Low-cost feed and strong demand from consumers for protein such as beef and chicken have in recent quarters bolstered profits for meat processors and producers such as Tyson.
Feed could remain cheap as this year’s corn and soybean harvests are likely to be at or near record levels, according to figures from the US Department of Agriculture released last week.
Sales in Tyson’s beef business, its largest segment, rose 9.5% in the fourth quarter ended September 30, while operating income more than doubled.
Net income attributable to Tyson rose almost 1% to $394m or $1.07 per share. Excluding one-time items, the company earned $1.43 cents per share, ahead of analysts’ average estimate of $1.38, according to Thomson Reuters.
The Springdale, Arkansas-based company’s net revenue rose 10.8% to $10.15bn. Analysts had expected $9.89bn.