Tyson Foods (TSN.US) Reports Surprising Q3 Earnings and Raises Full-Year Guidance

We have learned from our financial sources that Tyson Foods' robust chicken business continues to offset losses in beef business, resulting in a surprising quarterly profit that exceeded market expectations. The company announced an adjusted earnings per share of $0.91, representing a 5% year-over-year growth and exceeding market projections.

In its statement, Tyson Foods indicated that it expects full-year operating profit excluding certain items to be between $2.1 billion and $2.3 billion, up from its previous guidance range. The company's chicken segment is also expected to exceed its earlier forecast.

The raised guidance underscores the strong demand for chicken and low feed costs, which are helping Tyson Foods weather losses in its beef business due to severe U.S. cattle herd shortages.

The company's Q3 earnings growth was primarily driven by the profits of its chicken and prepared foods segments.

Data shows that the adjusted operating profit for the chicken segment was $345 million, a record performance for the same period since 2016 and exceeding analysts' expectations.

Meanwhile, excluding certain items, the beef business reported an adjusted operating loss of $151 million, marking its seventh consecutive quarter of losses and the company's largest single-line item loss.

As of Monday morning trading, Tyson Foods' stock price rose 4%.