Investors tucked into Tyson Foods (NYSE:TSN) Inc shares after the meatpacking giant predicted sales in the full-year fiscal 2023 would beat Wall Street estimates, as it appeared consumer sentiment amid rising costs was not denting demand.
The Arkansas-based company projected full-year sales to come in between $55 billion and $57 billion. Analysts had penciled in $53.60 billion.
It came as the firm's earnings for the fourth quarter to end-September missed expectations. Net income per share came in at US$1.63, down from $2.30 per share a year ago.
But group sales in the three months were $13.7 billion, up from $12.8 billion a year ago, beating analysts’ expectations of $13.5 billion.
Notably, sales in the three months at the company's chicken business, its largest after beef, increased 1.1%, even as Tyson raised prices by an average 18.2%.
Demand for premium cuts of beef fell in the fourth quarter compared to a year earlier, Tyson, the maker of Jimmy Dean sausages, said in a statement.
"We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein," said CEO and President Donnie King.
He pointed to "historically strong" operations in the beef business, a better performance in chicken, and market-share gains in both the group's food-service and retail markets.
Shares in New York added 1.63% in early trading to stand at US$67.84.
Contact the writer at giles@proactiveinvestors.com