Investors were tucking into shares of Tyson Foods Inc (NYSE:TSN) after it reported fiscal first quarter earnings that were better than expected.
Net income in the final three months of 2016 rose to US$593mln from US$461mln the year before, on sales that grew to US$9,182mln from US$9,142mln in 2015.
Earnings per share (EPS) rose to US$1.59, well ahead of the consensus forecast of US$1.26, and up from US$1.15 the year before.
Tyson, which owns the Jimmy Dean and Sara Lee brands, noted that the first quarter EPS was a record figure for the company.
It also clocked up record operating income of US$982mln, up 27% year-on-year, and a record operating margin of 10.7%.
Operating cash flow of more than US$1.1bn was also a record for the company.
“The year is off to the best start in company history with record earnings, record operating income and record cash flows,” said Tom Hayes, president and chief executive officer of Tyson Foods.
“Return on sales for each operating segment was in or above the normalized range. The tremendous returns generated in the Beef and Pork segments are providing fuel for growth in our value-added Chicken and Prepared Foods segments,” he added.
The company raised its earnings per share guidance for the full year to US$4.90-US$5.05. The median forecast for analysts who follow the stock is US$4.89.
Shares in Tyson Foods were up 4% at US$68 in pre-market trading.