NEW YORK (TheStreet) -- Tyson Foods (TSN) shares are up 3.6% to $41 on Monday after the company announced that it plans to sell its Mexican and Brazilian poultry business to JBS Pilgrim's Pride for $575 million to help raise money to pay down the debt it incurred from its acquisition of Hillshire Brands (HSH).
The company announced that it was buying Hillshire Brands for $7.75 billion earlier this month in a deal that is expected to close next year.
The company also reported an 11% rise in year over year third quarter revenues to $9.63 billion during the period, ahead of analysts $9.5 billion estimates before the opening bell today.
The food production company reported earnings of $260 million, or 75 cents per diluted share, 3 cents short of analysts expectations.
Last week Tyson Foods announced plans to close three plants that employ a total of 950 workers in Buffalo, New York, Cherokee, Iowa and Santa Teresa, New Mexico as part of its cost cutting strategy for the year.
TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYSON FOODS INC (TSN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."