Tyson Foods rallies after higher beef prices power a beat-and-raise quarter

Tyson Foods (NYSE:TSN) rallied in early trading on Monday after the protein company topped expectations with its FQ3 earnings report.

Revenue was up 4.0% from a year ago to $13.9 billion for the quarter that ended on June 28. Volume was down 0.1% during the quarter, while the average price change was up 3.8%. Beef prices saw the biggest jump, up 10% from a year ago.

Adjusted operating income was up 28% from a year ago to $1.68 billion. Tyson's (NYSE:TSN) adjusted operating margin was 3.7%, led by an 8.3% margin in the prepared foods business. Adjusted EPS was reported at $0.91 vs. $0.78 consensus and $0.87 a year ago.

"Our third quarter results demonstrate the strength of our multi-protein, multi-channel portfolio and our relentless focus on operational excellence," stated Tyson Foods (TSN) CEO Donnie King. 

"Delivering our fifth consecutive quarter of year-over-year growth across sales, adjusted operating income, and adjusted earnings per share underscores the resilience of our business model. Looking ahead, we are confident in our ability to meet consumer needs, capitalize on protein demand, and deliver long-term value to our shareholders."

On the guidance front, Tyson Foods (TSN) sees revenue growth of +2% to +3% vs. prior outlook for 0% to +1%.

Shares of Tyson Foods (TSN) jumped 3.8% in premarket action to $54.50 vs. the 52-week range of $51.85 to $66.88.