Packaged food company Tyson Foods (NYSE: TSN) Monday reported better-than-expected earnings and revenues for the second quarter of 2019.
The Springdale, Arkansas-based meat manufacturer posted adjusted earnings of $1.20 per share for the quarter, compared to $1.27 per share in the second quarter of 2018. Analysts had forecast a lower number. Reports profit rose to $430 million or $1.17 per share in the second quarter from $316 million or $0.85 per share a year earlier.
Driving the bottom-line growth, net sales climbed 6.9% annually to $10.44 billion during the three-month period, surpassing the market forecast.
Sales volume of beet increased due to improved availability of cattle supply and stronger demand for beef products. There was also an increase in the average sales price.
Driving the bottom-line growth, net sales climbed 6.9% annually to $10.44 billion during the three-month period
Sales volume of pork moved up amid increased domestic availability of live hogs. However, average sales price decreases in the segment. Aided by incremental volume from business acquisitions, the sales volume of chicken rose, while average sales price decreased. Meanwhile, Prepared Foods registered a decline in sales volume mainly due to business divestitures. But, the average sales price increased owing to a favorable product mix.
“The Prepared Foods segment produced its second consecutive quarter of record return on sales. Both the Beef and Pork segments were solid performers, while the Chicken segment is poised for improvement following what we believe are its margin lows for the year,” said CEO Noel White.
The management also reaffirmed its full-year 2019 guidance for adjusted earnings in the range of $5.75 per share to $6.10 per share.
Tyson Foods shares gained 41% since the beginning of 2019 and 10% over the past twelve months. The stock closed the last trading session slightly lower.