(Editor's note: Updates to reflect today's earnings release from Tyson.)
BOSTON ( TheStreet) -- Tyson (TSN), the world's largest meat company, is satisfying protein-hungry diets outside the U.S. That led to fiscal first-quarter sales jumping 15%, and profit margins widening almost 50%.
Yet, with commodity prices on the rise, Tyson will have to keep passing those costs on to customers if it wants to keep improving. Tyson reported fiscal second-quarter profit of 42 cents per share today, falling slightly short of analysts' estimates of 43 cents. Revenue of $8 billion exceeded expectations of $7.54 billion, yet gross margins narrowed to 6.7% from 8.2%
Tyson has made great strides. Key initiatives such as better inventory control and a focus on efficiency at production plants has led to $600 million in performance improvements in its chicken business alone over the past three years. Investors have taken notice, with the stock up 13% this year, easily exceeding the performance of the S&P 500 over the same period.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV