FollowOn Monday, Tyson 2015 profit forecast could surpass Wall Street expectation as the biggest meat processor in the United States had record-high beef prices, also helped by lower feed costs as well as its Hillshire brands purchase.
Shares of Tyson Foods, Inc rose over 5% at midday, including a higher-than-expected profit during the recent quarter. Beef prices rose 21.5%, while pork prices jumped 16.5% during the latest quarter due to tight supplies.
Low-priced chicken products continue, considering the reduction of gas prices, freeing up more money for consumers to visit restaurants, according to Donnie Smith, company Chief Executive Officer (CEO).
The company reported a 42-billion-dollar 2015 revenue forecast, including 4-billion-dollar revenue from its Hillshire purchase. The CEO expects about 3% increase in chicken supplies within the fiscal year, although chicken sales rose during the recent quarter. However, prices drop 4% due to the decline of feed costs.
Smith also said the demands in China remains in a holding pattern, following a meat scandal involving a McDonald’s Corp’s major supplier.
The company net income almost halved to 137 million dollars or 35 cents per share during the fourth quarter. Earnings except special items and acquisition charges were at 87 cents a share, while analysts forecast was at 76 cents. Company shares rose 5.3% during midday at 42.81 dollars.
Tyson derives nearly 15% of its sales from Wal-Mart Stores Inc, thus, forecasting adjusted profit between 3.30 and 3.40 dollars per share for the year ending Sept 2015. The average expectation of analysts for Tyson 2015 profit forecast was at 3.33 dollars per share.
