Shares of Tyson Foods, Inc. (NYSE: TSN) rose 3% at $65.19 in premarket trading after the company reported third quarter profits and sales that surpassed expectations on Monday.
The company said a rise in export demand and higher prices on beef, pork, and chicken greatly improved its topline in this quarter. U.S. beef exports are set to get a boost as China earlier this year lifted its ban on beef from the United States, which was enforced in 2003 due to a scare over mad cow disease.
Tyson, which also benefited from the summer grilling season and new products, said the average price increase across its segments was 4.2% in its fiscal third quarter. The rise in global demand helped the company deal with higher operating costs.
Overall, the No. 1 U.S. meat processor reported a profit of $447 million, or $1.21 a share, down from $484 million, or $1.25, a year earlier. Excluding items such as the purchase of AdvancePierre, earnings rose to $1.28 a share, compared with $1.21 a share. Revenue rose 4.8% to $9.85 billion. Analysts polled by Thomson Reuters had forecast earnings of $1.18 a share on $9.48 billion in revenue.
Tyson also raised the lower end of its adjusted profit forecast by 5 cents to $4.95 per share to $5.05 per share for the year ending September and sales above $38 billion, compared with its previous forecast of sales to remain flat at $36.88 billion.