Tyson Foods beats quarterly profit estimates on chicken demand

CHICAGO, Feb 2 (Reuters) - U.S. meatpacker Tyson Foods reported bigger-than-expected quarterly net connected Monday, arsenic beardown request for its chickenhearted products ​overshadowed hefty losses successful its beef business.

Beef prices person climbed ‌as ranchers slashed the size of the U.S. cattle herd pursuing a persistent drought that ‌burned up pastures and hiked feeding costs, shifting immoderate request to lower-cost chicken.

The cattle herd shrank to a 75-year debased arsenic of January 1, the U.S. Department of Agriculture said connected Friday.

Although meatpackers including Tyson payment from ⁠high prices, they person paid ‌increased costs to bargain cattle to slaughter owed to constricted supplies.

Tyson's chickenhearted unit's income gained 3.7% for the 4th ‍while beef income volumes fell 7.3% arsenic prices jumped 17.2%.

The Springdale, Arkansas-based company's nett income roseate 5.1% to $14.31 cardinal successful the archetypal quarter, beating the mean expert ​estimate of $14.09 billion. Its adjusted net per stock of 97 cents ‌topped expectations of 94 cents.

Tyson forecast income to beryllium up 2% to 4% successful fiscal 2026, compared with past year, the midpoint of which is higher than analysts' estimates of 2.8%, according to information compiled by LSEG.

The institution raised its adjusted income outlook for chicken, pork and prepared ⁠foods for fiscal 2026 and reduced its ​projected nonaccomplishment for beef.

For chicken, Tyson anticipates ​segment operating income of $1.65 cardinal to $1.90 cardinal connected an adjusted ground successful fiscal 2026. Previously, it expected adjusted operating income ‍of $1.25 cardinal to $1.5 ⁠billion.

The meatpacker began wide layoffs successful January astatine a large beef works it is closing successful Lexington, Nebraska, that erstwhile employed astir ⁠3,200 people. The institution has besides said it would trim operations astatine a beef works ‌in Amarillo, Texas.

(Reporting by Tom Polansek and Angela Christy M ‌in Bengaluru; Editing by Maju Samuel)