SPRINGDALE, Ark. (AP) — Tyson Foods reported growing profit and revenue during the second quarter thanks to better pricing and shares jumped nearly 4 percent in early trading.
Net income rose 4 percent to $166 million, or 44 cents per share, from $159 million, or 42 cents. That beat the 39 cents predicted by analysts polled by FactSet.
Revenue rose 3 percent to $8.3 billion for the period covering January through March. However, that missed the $8.47 billion expected by analysts. While sales volume actually fell 4 percent, Tyson was able to get higher prices overall for its products. Like its rivals, Tyson is paying more for feed, so it's raising prices and cutting expenses to make up for the extra cost.
Shares rose 67 cents to $18.71 on the report.
CEO Donnie Smith said he expects the company to gain momentum in the coming months and that Tyson still has the potential to earn $2 per share for the year, as it previously predicted.
Higher sales volume internationally helped during the most recent months, the company said.