Tyson Foods (TSN) rose Monday morning after the food company maintained its earnings guidance for the year despite fiscal third-quarter sales missing expectations.
The Springdale, Ark.-based company said it still expects to post adjusted per-share earnings between $5.75 and $6.10 for fiscal 2019. Capital IQ expects $6.04.
Sales for the quarter ended June 30 rose to $10.89 billion from $10.05 billion in the prior-year period. Capital IQ had expected $10.95 billion. Adjusted EPS was $1.47, down from $1.50 last year but matching the Street’s consensus.
Tyson shares popped almost 7% in early trading.
Beef sales rose to $4.16 billion from $3.99 billion last year as volume firmed 1.8% due to improved cattle supply and demand. Pork sales increased to $1.32 billion from $1.2 billion on a 3.1% volume gain on increased availability of domestic live hogs.
Chicken sales advanced to $3.33 billion, driven by a 23% rise in volume, from $2.97 billion, fueled by acquisitions.
Sales of prepared foods slipped to $2.09 billion from $2.13 billion on divestitures.
Tyson said for fiscal 2020, it expects sales to grow 6% to 7% to $45 billion to $46 billion “as we grow our value-added businesses and realize the full-year impact” of its acquisitions of Keystone Foods and the Thai and European operations of BRF SA.