Springdale-based meat company Tyson Foods posted double-digit gains in earnings and revenue and beat expectations in the fiscal third quarter as its foodservice volumes and beef production increased amid rising demand.
Before the markets opened Monday (Aug. 9), Tyson Foods reported earnings rose 42.3% to $749 million for the period that ended July 3, from $526 million in the same period that ended June 27, 2020. Earnings per share rose to $2.05, from $1.44. Earnings beat estimates of $1.45 per share, according to a consensus of 11 analysts.
Revenue increased 24.5% to $12.47 billion, from $10.02 billion. Revenue beat estimates of $11.43 billion, based on a consensus of 10 analysts.
Through three quarters, net income rose 20.2% to $1.69 billion, from $1.4 billion. Revenue increased 7.9% to $34.23 billion, from $31.72 billion.
“We delivered a strong performance in a strong protein market,” said Donnie King, president and CEO of Tyson Foods. “With trusted brands that met strong consumer demand, we have delivered 12 consecutive quarters of share gains in core business lines at retail. Our foodservice volume improved as the restaurant industry began to reopen and recover. Our beef business increased production to meet strong U.S. and international demand for higher-quality products. And we continued to build financial strength, reducing our debt and investing in future growth by laying out plans to expand our business, both to address capacity constraints and meet growing demand.”
Following are business segment results for the fiscal third quarter, compared to the same period in 2020:
Operating income increased 72.5% to $1.12 billion, from $649 million. Sales rose 26.2% to $4.95 billion, from $3.65 billion.
Operating income declined 37.3% to $67 million, from $107 million. Sales rose 53.8% to $1.71 billion, from $1.11 billion.
The segment had an operating loss of $279 million, compared to an operating loss of $120 million in the same period in 2020. Revenue increased 11.6% to $3.47 billion, from $3.11 billion.
Operating income rose 3.4% to $150 million, from $145 million. Sales rose 14.1% to $2.32 billion, from $2.03 billion.
Operating income rose to $4 million, compared to an operating loss of $8 million. Sales rose to $8 million, compared to a loss of $8 million.
Other third-quarter highlights included an operating margin of 8.5%, selling its pet treats business to General Mills for $1.2 billion and requiring vaccinations for all U.S. employees of whom about half are vaccinated. The company expects fiscal 2021 revenue of between $46 billion to $47 billion. Its fiscal 2020 revenue was $43.2 billion.
Shares of Tyson Foods (NYSE: TSN) closed Friday (Aug. 6) at $71.16 per share, up $1.02 or 1.45%. In the past 52 weeks, the stock has ranged between $81.79 and $55.82 per share.