Tyson Foods Inc (NYSE:TSN) reported first-quarter earnings on Monday that slightly exceeded analyst expectations, buoyed by strong chicken sales even as beef pressures weighed on profits.
Adjusted earnings per share came in at $0.97, above the $0.94 estimate, while revenue rose 5.1% to $14.31 billion, surpassing forecasts of $14.09 billion. Net income for the quarter was $85 million.
The company said its Prepared Foods segment delivered growth on both top and bottom lines, while its Chicken division posted a fifth consecutive quarter of volume gains, with a 10.9% operating margin.
In contrast, Tyson’s Beef segment continued to struggle, reporting a negative 2.4% margin amid limited cattle supplies and a $150 million legal contingency accrual.
Looking ahead, Tyson expects full-year capital expenditures of $700 million to $1 billion, sales growth of 2% to 4%, and adjusted operating income of $2.1 billion to $2.3 billion. Chicken is projected to generate $1.65 billion to $1.9 billion in profit, while Beef is forecast to lose $250 million to $500 million.
Tyson shares rose about 0.8% in early Monday trading.