Tyson Foods Beats Profit Expectations, But Sales Miss

Meat and prepared foods company Tyson Foods Inc. reported a fiscal second-quarter net profit that rose to $310 million, or 75 cents a share, from $213 million, or 60 cents a share in the same period a year ago. The adjusted earnings per share, which excludes non-recurring items, of 75 cents beat the FactSet consensus of 72 cents. Revenue increased to $9.78 billion from $9.03 billion, missing the FactSet consensus of $10.1 billion. A big jump in prepared foods sales offset declines in chicken, beef and pork sales. The company affirmed its full-year adjusted EPS outlook of $3.30 to $3.40. "The acquisition of Hillshire Brands has played an important role in Tyson Foods' transformation, and we are very pleased with the progress of the integration and synergy capture, achieving $77 million in synergies in the second quarter," said Chief Executive Donnie Smith. The stock, which edged up 0.3% in premarket trade, has gained 1% year to date, while the S&P 500 has advanced 2.4%.