Tyson Foods Inc boosted its full-year sales forecast on Monday, citing higher meat prices as a reason for exceeding quarterly revenue and earnings expectations.
In premarket trade, the stock gained around 2 per cent.
The White House and Congress have questioned meatpackers about rising meat costs, with the White House blaming the rises on a lack of competition in the industry.
Companies like Tyson claim they raised prices to counter increased labour and commodity expenses, including as animal feed, which have been hastened by the Ukraine conflict.
"Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down," Chief Executive Officer Donnie King said in a statement.
Tyson, which is based in Springdale, Arkansas, now forecasts annual sales of $52 billion to $54 billion, up from a previous estimate of $49 billion to $51 billion.
According to Refinitiv IBES data, analysts predict a number of $51.79 billion on average.
Tyson said average beef prices surged 23.8 per cent year over year in the quarter ending April 2, while chicken prices increased 14.4 per cent and hog prices increased 10.8 per cent. According to the corporation, sales volumes in the beef and chicken industries were practically flat, while sales in the pork industry declined 4.8 per cent.
Quarterly revenue increased to $13.12 billion from $11.30 billion a year ago, exceeding analysts' projections of $12.85 billion.
Tyson reported adjusted earnings per share of $2.29, above expectations for $1.91.
(Source:www.usnews.com)
In premarket trade, the stock gained around 2 per cent.
The White House and Congress have questioned meatpackers about rising meat costs, with the White House blaming the rises on a lack of competition in the industry.
Companies like Tyson claim they raised prices to counter increased labour and commodity expenses, including as animal feed, which have been hastened by the Ukraine conflict.
"Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down," Chief Executive Officer Donnie King said in a statement.
Tyson, which is based in Springdale, Arkansas, now forecasts annual sales of $52 billion to $54 billion, up from a previous estimate of $49 billion to $51 billion.
According to Refinitiv IBES data, analysts predict a number of $51.79 billion on average.
Tyson said average beef prices surged 23.8 per cent year over year in the quarter ending April 2, while chicken prices increased 14.4 per cent and hog prices increased 10.8 per cent. According to the corporation, sales volumes in the beef and chicken industries were practically flat, while sales in the pork industry declined 4.8 per cent.
Quarterly revenue increased to $13.12 billion from $11.30 billion a year ago, exceeding analysts' projections of $12.85 billion.
Tyson reported adjusted earnings per share of $2.29, above expectations for $1.91.
(Source:www.usnews.com)
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