10:56 AM EST, 11/12/2024 (MT Newswires) -- Tyson Foods ( TSN ) surpassed top- and bottom-line expectations for the fiscal fourth quarter on Tuesday and issued guidance implying a slight cooldown in sales in the new year amid ongoing uncertainties with its beef business.

Revenue rose to $13.57 billion for the three-month period ended Sept. 28 from $13.35 billion a year ago and topped the $13.43 billion average analyst estimate on Capital IQ. Shares of Tyson were up 10% in morning trade

Adjusted earnings per share climbed to $0.92 from $0.37 and beat the Street's $0.69 expectation. Chief Financial Officer Curt Calaway told analysts that fourth-quarter adjusted operating income, margin and adjusted EPS were more than double the same period last year and the best performance in eight quarters, according to a Capital IQ transcript.

The maker of meat brands such as Tyson, Jimmy Dean and Ball Park reported a 3.7% volume increase in beef and a 3.2% improvement in pork. Chicken and prepared foods volumes dipped 0.7% and 1.4%, respectively.

For 2025, Tyson expects sales to be down 1% to flat compared with fiscal 2024 revenue of $53.31 billion, which was up 0.8% year-over-year. The Street consensus is for revenue of $54.13 billion in the ongoing year.

"We delivered significant improvement in profitability for the fourth quarter and full year," Chief Executive Donnie King said in a statement. "We are optimistic about our outlook and our ability to deliver long-term value to our shareholders."

The company guided adjusted operating income between $1.8 billion and $2.2 billion for fiscal 2025. Growth will be led by an adjusted operating income of between $1 billion and $1.2 billion for chicken, $900 million to $1.1 billion for prepared foods, and $100 million to $200 million for pork. Tyson expects a beef adjusted operating loss of between $200 million and $400 million.

Uncertainties remain in the beef segment, including the "timing and pacing of meaningful herd rebuild intentions," Calaway said on the call.

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