SPRINGDALE, Ark. (AP) — Tyson Foods said Monday that its second-quarter net income more than doubled, benefiting from strong demand for chicken and higher prices for beef and pork.
But earnings for the biggest U.S. meat company fell short of projections for the quarter and its forecast for full-year earnings was well below analysts' expectations. Its shares tumbled about 10 percent in afternoon trading.
Chicken sales rose on strong demand, while beef and pork sales climbed as they were helped by higher prices amid tight supplies. Sales of prepared foods also increased, thanks in part to some successful product launches.
In the international segment, sales fell slightly as the unit contends with soft demand in China.
For the three months ended March 29, Tyson earned $213 million, or 60 cents per share. A year earlier the company earned $95 million, or 43 cents per share.
Analysts, on average, forecast slightly higher earnings of 62 cents per share for the latest quarter, according to a FactSet survey.
Revenue increased 8 percent to $9.03 billion from $8.38 billion, topping Wall Street's estimate of $8.8 billion.
Tyson Foods Inc. said that it was the first time its quarterly revenue has passed the $9 billion mark, and Tyson boosted its full-year revenue forecast.
The Springdale company anticipates full-year earnings of at least $2.78 per share on revenue of approximately $37 billion. It previously forecast revenue of about $36 billion.
The revenue projection topped analysts' forecast of $36 billion, but were expecting higher earnings of $2.93 per share.
Its stock dropped $4.22, or 9.9 percent, to $38.43 in late afternoon trading. Its shares had been up more than 27 percent so far this year through Friday.