Tyson Foods expects adjusted operating income of $1.3 billion to $1.4 billion for fiscal 2025 in the chicken segment.
Tyson Foods (TSN) gained retail attention on Monday after the meatpacker raised its annual revenue forecast, betting on strong demand in its chicken and prepared foods segments.
Retail sentiment on the stock remained unchanged in the ‘bullish’ territory with chatter at ‘high’ levels, according to Stocktwits data.
Shares of Tyson Foods jumped 4.3% in premarket trading on Monday after the company topped third-quarter profit and revenue estimates. The firm saw demand grow for its prepared foods as more people cook at home, driven by macro uncertainty and an attempt to save dollars from dining out.
Tyson Foods said it expects adjusted operating income of $1.3 billion to $1.4 billion for fiscal 2025 in the chicken segment and adjusted operating income of $925 million to $1.0 billion in fiscal 2025 for prepared foods.
“Looking ahead, we are confident in our ability to meet consumer needs, capitalize on protein demand, and deliver long-term value to our shareholders,” CEO Donnie King said.
However, the company flagged an adjusted operating loss between $375 million and $475 million in fiscal 2025 in the beef segment. U.S. meatpackers are facing a tight U.S. cattle supply stemming from a combination of prolonged drought conditions, rising input costs, and herd contraction.
Tyson Foods forecast annual revenue to rise between 2% and 3%, compared with the previous expectation of flat to a 1% rise.
The stock has lost nearly 9% year-to-date and has declined over 14% in the last 12 months.
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