Tyson Foods, Inc. (NYSE:TSN) stock rose 0.15% (As on August 9, 11:44:44 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 22. Beef’s sales volume increased in the third quarter of fiscal 2022 driven by a strong global demand environment, partially offset by a challenging labor environment and continued supply chain constraints. Average sales price decreased slightly in the third quarter of fiscal 2022 driven by reduced demand for premium cuts of beef as compared to exceptionally high demand in the third quarter of fiscal 2021. Pork’s sales volume decreased in the third quarter and first nine months of fiscal 2022 due to reduced global demand. Average sales price decreased in the third quarter due to reduced export and retail demand. Operating income decreased in the third quarter of fiscal 2022 due to periods of compressed pork margins. Chicken’s sales volume decreased in the third quarter of fiscal 2022 primarily due to a reduction in volumes related to a fire at a production facility in the fourth quarter of fiscal 2021 and a reduction in outside meat purchases. Average sales price increased in the third quarter and first nine months of fiscal 2022 due to the effects of pricing initiatives in an inflationary cost environment. Operating income increased in the third quarter and first nine months of fiscal 2022 primarily due to higher average sales prices, partially offset by the impacts of inflationary market conditions including increased supply chain and labor costs.

TSN in the third quarter of FY 22 has reported the adjusted earnings per share of $1.94, missing the analysts’ estimates for the adjusted earnings per share of $1.98. The company had reported the adjusted revenue growth of 35.9 percent to $13.50 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $13.25 billion, according to IBES data from Refinitiv.

Moreover, for beef, USDA projects domestic production will increase approximately 1% in fiscal 2022 as compared to fiscal 2021. For Pork, USDA projects domestic production will decrease approximately 3% in fiscal 2022 as compared to fiscal 2021. Tyson also trimmed its projection for capital expenditure to $1.9 billion from $2 billion. For Chicken, USDA projects chicken production will increase approximately 1% in fiscal 2022 as compared to fiscal 2021. The company expects sales to be $52 billion to $54 billion in fiscal 2022.