Tyson Foods Stock Gains On Strong Q3, Raised FY21 Sales Outlook

Tyson Foods Inc TSN reported third-quarter FY21 sales growth of 24.5% year-on-year, to $12.48 billion, beating the analyst consensus of $11.43 billion.
Sales volume of Beef jumped 24% Y/Y, Pork rose 14.5%, Chicken gained 3.3%, and Prepared Foods increased 4.5%.
Gross profit increased 23.4% Y/Y to $1.6 billion, with a profit margin of 12.9%.
It incurred expenses associated with the impact of COVID-19 totaled about $55 million in Q3.
The operating margin was 8.5%, and operating income for the quarter rose 37.4% to $1.1 billion.
The company held $1.6 billion in cash and equivalents as of July 3, 2021.
Cash provided by operating activities for the nine months amounted to $2.66 billion.
Adjusted EPS of $2.70 beat the analyst consensus of $1.45.
"Our foodservice volume improved as the restaurant industry began to reopen and recover. Our beef business increased production to meet strong U.S. and international demand for higher-quality products," said CEO Donnie King.
Outlook: Tyson Foods expects FY21 sales of $46 billion - $47 billion (prior $44 billion - $46 billion), versus the consensus of $45.02 billion.
It sees Chicken results likely to be lower in FY21, but Beef to deliver improved results.
Price action: TSN shares are trading higher by 5.95% at $73.35 on the last check Monday.

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