Tyson Foods up on potential beef supply recovery, chicken strength
TSN•Shares rise on beef recovery hopes and chicken strength
Shares of meat packer Tyson Foods TSN.N rose as much as 3.3% to $59.87, reversing earlier losses.
The company trimmed its annual profit forecast on tight U.S. cattle supplies driving losses in its beef business, but said it sees "another constructive year" in its profitable chicken business in 2027.
Analysts point to Mexican border reopening and cattle inventory trends
"While we would have expected the softer guidance in Beef to drive shares lower, we think the recent announcement to reopen the Mexican border to cattle trading, coupled with stronger-than-anticipated heifer retention on the latest Cattle Inventory report could provide incremental confidence in the long-term Beef earnings recovery," Stephens analysts said.
Tyson CEO Donnie King said the Mexican border reopening will not solve the entire gap of beef losses, adding that restarting U.S. imports could lead to some improvement in 2027 and beyond.
TSN also narrowed its annual sales forecast and posted a narrow Q3 sales miss, while adjusted EPS came in line with analysts' estimates.
As of the last close, TSN was down about 1% year to date.
