Tyson Foods Inc. (TSN:US), the largest U.S. meat producer, reported better-than-expected fiscal second-quarter sales and raised its full-year forecast amid surging prices for beef and pork.
Revenue rose to $9.03 billion in the three months through March from $8.38 billion a year earlier, the Springdale, Arkansas-based company said in a statement today. That exceeded the $8.82 billion average of nine analysts’ estimates compiled by Bloomberg.
The company also said full-year sales will be about $37 billion. Tyson said in January it expected revenue would be approximately $36 billion.
Second-quarter per-share profit was 60 cents, compared with the 63-cent average of 10 estimates.
The wholesale price of pork has jumped 35 percent this year after a piglet-killing virus curbed domestic supply. Beef is 14 higher percent as drought and high feed costs shrink the U.S. cattle herd.
More than 5,000 cases of the virus have been reported with it spreading to at least 27 states, according to the National Animal Health Laboratory Network. U.S. production may drop the most in three decades this year, Rabobank International has estimated.
Tyson has gained 27 percent this year, outpacing the 2.4 percent advance in the Standard and Poor’s 500 Consumer Staples Index.
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