Tyson Foods (TSN) - Get Report posted third quarter earnings Monday that were largely in-line with Wall Street forecasts, while confirming its 2019 profit guidance, but noted optimism for export markets in the coming financial year.
Tyson Foods said adjusted earnings for the three months ending in June, the company's fiscal third quarter, came in at $1.47 per share, essentially flat from last year and matching the Street consensus forecast. Group revenues, the company said, rose 3.56% from last year to $10.855 billion, narrowly missing analysts' estimates of a $10.95 billion tally.
Looking into the full 2019 year, Tyson Foods said it sees sales in the region of $43 billion, with earnings in the range of $5.75 to $6.10 per share, while the 2020 year should see an increase in protein production of around 2% from the previous year's levels.
"Overall, third quarter earnings were in line with our expectations," said CEO Noel White. "Volume growth in our core retail lines continues to outpace other large food companies and the total food and beverage category, driven primarily by our new product innovation."
"Our Prepared Foods and Beef segments produced strong results in the quarter, while results in the Chicken segment were mixed, and the Pork segment was negatively affected by increased hog costs," he added.
"The African Swine Fever outbreak continues to take its toll on hog supplies in Asia; however, we have not yet experienced significant benefits to our Pork, Chicken or Beef segments," White said. "Given the magnitude of the losses in China's hog and pork supplies, the impending impact on global protein supply and demand fundamentals is likely to be a multi-year event."
Tyson Foods shares were marked 6.5% higher following the earnings release to change hands at $85.30, a move that would extend the stock's year-to-date gain past 53%.
