Tyson Issues Better-Than-Expected Q1 Results, FY14 Guidance; Shares Jump Nearly 10%

Shares of Tyson

shares are up more than 7 percent to around $37.70 following Friday morning's earnings beat. The company continues its strong earnings trend with first-quarter results, with highlights including sales of $8.76 billion and EPS of $0.72, up from $8.36 billion and $0.49, respectively, in the same period last year. The figures were in-line with the analyst consensus estimates of $8.76 billion in sales and EPS of $0.63. Tyson said it is looking for FY14 revenue of $36 billion, ahead of the $35.75 billion consensus. The company cited continued execution on the strategy aimed at accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production. Tyson expects overall domestic production of chicken, beef, pork, turkey, to increase roughly 1 percent from FY13 levels. Grain supplies are expected to increase, which should lower feed costs to approximately $600 million Shares opened 5 percent higher at $35.68. Peers Hormel Foods Corp

, Hillshire Brands

and Sanderson Farms

are also trading higher Friday afternoon.