Tyson Foods Inc. of Springdale (NYSE: TSN) on Monday reported that net income was flat in its fiscal third quarter as sales in its chicken, pork and prepared foods segments declined.
The meat giant reported $750 million in profit, up from $749 million in the same quarter a year ago.
The company posted earnings per share of $2.07, up 1% from $2.05 a year ago. Earnings adjusted for non-recurring gains were $1.94 per share, down 28% from $2.70 in the third quarter in 2021.
The results topped Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.91 per share.
Tyson reported revenue of $13.5 billion in the quarter, which also topped Wall Street forecasts. Three analysts surveyed by Zacks expected $13.31 billion.
Tyson expects full-year revenue in the range of $52 billion to $54 billion.
Beef sales rose 1.3% in the third quarter on strong global demand, but were partially offset by labor and supply chain challenges. The average sales price decreased slightly because of reduced demand for premium cuts. Additionally, Tyson reported a $55 million gain from the recovery of cattle inventory related to a supplier's misappropriation of company funds.
Chicken sales fell 2.1% in the quarter, which the company primarily attributed to a fire at a production facility in the fourth quarter of fiscal 2021 and a reduction in outside meat purchases. The average sales price was up more than 20% compared to the same quarter in 2021, which the company attributed to "the effects of pricing initiatives in an inflationary cost environment."
The company said pork sales decreased 1.7% in the quarter due to reduced global demand, while the average sales price fell nearly 4% due to reduced export and lower retail demand.
Tyson said sales of prepared foods declined 8.5% due to the impacts of increased pricing, uneven recovery of the food service industry, the divestiture of its pet treats business in the fourth quarter of fiscal 2021, and a challenging supply environment in the first half of fiscal 2022. Sales prices for prepared foods rose nearly 14% in the quarter, which Tyson primarily attributed to "the effects of revenue management in an inflationary cost environment."
“We delivered solid results during the third quarter, focusing on operational excellence and aggressive cost management," Donnie King, president and CEO of Tyson Foods, said in a news release.
Tyson shares were down about 8% late Monday morning.
The company announced last month that it has an agreement to acquire stakes worth about $70 million total in two Saudi food companies. The company said the deal will help the company meet growing demand for protein in the Middle East.
The Associated Press contributed to this report.