Aug 4 (Reuters) - Tyson Foods ( TSN ) raised annual
revenue forecast and posted better-than-expected results for the
third quarter on Monday, betting on resilient demand for its
meat products, especially chicken.
Profit margins jumped in Tyson's chicken and prepared foods
businesses, while they worsened in its beef segment.
Tight U.S. cattle supplies continue to force Tyson and other
meatpackers to pay more money to buy livestock to slaughter into
beef.
However, the Springdale, Arkansas-based company has seen
sustained demand for frozen meat and ready-to-eat food as
consumers increasingly opted to cook meals at home in the face
of growing uncertainties about tariffs and economic growth.
The Ball Park hotdogs maker expects fiscal 2025 revenue to
grow between 2% and 3%, compared with its prior forecast of
flat-to-up 1%.
Tyson said it expects its chicken business to earn an annual
adjusted operating income of $1.3 billion to $1.4 billion, up
from its previous forecast of $1 billion to $1.3 billion.
Its beef business - the largest product segment by sales -
is expected to lose $375 million to $475 million in fiscal 2025,
compared with the previous loss estimate of $200 million to $400
million.
Volumes in Tyson's beef segment were down 3.1% during the
quarter ended June 28, but sales grew 6.9% as prices jumped 10%.
The segment had an adjusted operating loss of $151 million,
compared with losses of $69 million a year earlier.
Sales in the chicken segment rose 3.5%, with volumes up
2.4%.
The company's quarterly net sales rose 4% to $13.88 billion,
compared with analysts' average estimate of $13.56 billion,
according to data compiled by LSEG.
Tyson earned 91 cents per share, on an adjusted basis, while
the estimate was 78 cents.