UPDATE: Tyson Posts Downbeat Q3 Profit, Revenue Beats View
Tyson Foods (NYSE: TSN) reported weaker-than-expected third-quarter net income and announced its plans to sell its Mexican and Brazilian chicken businesses for $575 million.
The Springdale, Arkansas-based company's quarterly net income surged to $260 million, or $0.73 per share, versus a year-ago profit of $249 million, or $0.68 per share. Excluding certain items, its adjusted income from continuing operations came in at $0.75 per share.
Its revenue climbed 10.9% to $9.68 billion from $8.73 billion. However, analysts were expecting earnings of $0.78 per share on revenue of $9.47 billion.
Chicken segment sales increased to $2.83 billion, while beef sales climbed 13%. Pork sales jumped 33% to $1.77 billion, while prepared-food sales increased 13% to $901 million.
Its gross margin shrank to 6.6% from 7.8%.
The company's press release offered the following comment from Donnie Smith, Tyson Foods' president and chief executive officer:
"We are nearing the end of what looks to be the best year in our company's history."
For the next fiscal year, Tyson Foods projects 10% rise in EPS, on sales of $42 billion. Analysts expected 8% EPS growth on sales of $38.75 billion. Tyson Foods expects FY14 sales of $38.0 billion.
Tyson Foods shares fell 0.58% to close at $39.54 on Friday.
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