Tyson Foods Inc. shares are up 4.4% in premarket trading after after meat company reported first-quarter earnings that exceeded expectations and the company raised its earnings guidance. Tyson had net income of $461 million, or $1.15 per share, for the first quarter, up from $310 million, or 74 cents per share last year. Adjusted earnings were also $1.15 per share. The FactSet consensus was 89 cents per share. Sales totaled $9.2 billion versus $10.8 billion last year. The FactSet consensus was $10 billion. Tyson said sales in the chicken segment were $2.6 billion, down from $2.8 billion last year. The FactSet consensus was $2.7 billion. Sales in the beef segment were $3.6 billion against $4.4 billion last year. The FactSet consensus was $4.3 billion. Pork segment sales were $1.2 billion versus $1.5 billion last year. The FactSet consensus was $1.4 billion. And the prepared foods segment had sales of $1.9 billion, down from $2.1 billion last year. The FactSet consensus was $2.1 billion. On Feb. 4, Tyson's board approved an addition 50 million share buyback. For fiscal 2016, the company expects domestic protein production to increase 2% to 3% year-over-year, which could put pressure on pricing. The company sees sales of $37 billion, down from $41 billion. The FactSet consensus is $39.8 billion. But the company is raising its earnings outlook to $3.85 to $3.95 per share from previous guidance of $3.50 to $3.65. The FactSet consensus is $3.62. Tyson shares are up 29.8% for the past 12 months while the S&P is down 7.1% for the same period.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.