Tyson Foods tops profit estimates as low-cost feed provides boost

[November 13, 2017]  (Reuters) - U.S. meat processor Tyson Foods Inc's  quarterly earnings and revenue topped analysts' forecasts, as its chicken and beef businesses benefited from strong demand as well as lower costs to buy animal feed.

Tyson Foods brand frozen chicken wings are pictured in a grocery store freezer in the Manhattan borough of New York City, U.S. May 11, 2017. REUTERS/Carlo Allegri/File Photo

Shares of Tyson, the maker of Ball Park hot dogs, rose nearly 4 percent to $77 in premarket trading on Monday.

Low-cost feed and strong demand from consumers for protein such as beef and chicken have in recent quarters bolstered profits for meat processors and producers such as Tyson.

Feed could remain cheap as this year's corn and soybean harvests are likely to be at or near record levels, according to figures the U.S. Department of Agriculture released last week.

Sales in Tyson's beef business, its largest, rose 9.5 percent in the fourth quarter ended Sept. 30, while operating income more than doubled.

Net income attributable to Tyson rose almost 1 percent to $394 million or $1.07 per share. Excluding one-time items, the company earned $1.43 cents per share, ahead of analysts' average estimate of $1.38, according to Thomson Reuters I/B/E/S.

The Springdale, Arkansas-based company's net revenue rose 10.8 percent to $10.15 billion. Analysts had expected $9.89 billion.

(Reporting by Uday Sampath in Bengaluru; Editing by Sai Sachin Ravikumar)

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