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Tyson Foods Stock Leaps After Street-Beating Earnings, Solid 2021 Outlook

“With trusted brands that met strong consumer demand, we have delivered 12 consecutive quarters of share gains in core business lines at retail," said new CEO Donnie King.

Tyson Foods Inc.  (TSN) - Get Tyson Foods, Inc. Class A Report posted much stronger-than-expected second quarter earnings Monday, and lifted its full-year sales forecast, as a global demand rebound boosted the top and bottom lines of the world's biggest food producer.

Tyson Foods said adjusted earnings for the three months ending in June, the group's fiscal second quarter, were pegged at $2.70 per share, up 93% from the same period last year and smashing the Street consensus forecast of $1.61 per share. Group revenues, Tyson said, rose 24.5% to $12.5 billion, again firmly ahead of analysts' forecast of an $11.5 billion tally.

Looking into the second half of the year, Tyson Foods said its sees revenues of between $46 billion and $47 billion, a $2 billion increase from the lower-end of its prior guidance, but cautioned that COVID-related costs would hit around $325 million.

“We delivered a strong performance in a strong protein market,” said new CEO Donnie King. “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," King added. "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.”  

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Tyson Foods shares were marked 6.1% higher in early trading immediately following the earnings release to change hands at $75.45 each, a move that would extend the stock's year-to-date gain to around 17%.

Earlier this spring, Tyson Foods said CEO Dean Banks will leave the group after less than a year at the helm for "personal reasons", with industry veteran King tabbed as his replacement.

One of King's first acts as CEO, in fact, was to mandate coronavirus vaccinations for its 141,000-strong workforce. 

"We did not take this decision lightly,"  King said. "We have spent months encouraging our team members to get vaccinated – today, under half of our team members are."