Tyson Foods (TSN) has reported mixed financial results as the company undertakes strict cost control measures.
The Arkansas-based company reported earnings per share (EPS) of $0.62 U.S., which was well ahead of the $0.39 U.S. consensus expectation of analysts.
Revenue in what was the company’s fiscal second quarter came in at $13.07 billion U.S., below the consensus estimate of $13.15 billion U.S. on Wall Street.
The latest results come as Tyson Foods, which is the biggest U.S. meat company by sales, shutters some of its U.S. chicken processing plants to reduce costs.
Tyson has closed six chicken plants in four states since the start of 2023, laid off corporate employees, and announced plans to close a pork plant as it reigns in costs.
The company is trying to turnaround its chicken unit after struggling with excess supply.
Operating margins at Tyson were 3.9% in the latest quarter compared to negative 3.7% a year ago.
Tyson has also struggled with slowing demand from price-conscious consumers who have been cutting back on their meat purchases in recent months.
However, management said that the company is benefiting internally from lower prices for animal feed, as corn and soy futures hit three-year lows in recent months.
Tyson said feed ingredient costs for its chicken business declined $190 million U.S. in the most recent quarter.
As for guidance, Tyson raised its forecast for operating income from chicken to $700 million U.S. to $900 million U.S., up from a previous outlook of $500 million U.S. to $700 million U.S.
The stock of Tyson Foods has risen 22% over the last 12 months to trade at $62.02 U.S. per share.
