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This was the key to Tyson Foods’ Q1 beat, Jim Cramer says

Tyson Foods reported better-than-expected quarterly results thanks to its acquisition of Hillshire Brands, CNBC's Jim Cramer said Monday.

"Remember that Hillshire deal? … It turned out to be inexpensive for them," Cramer said on "Squawk on the Street," adding the deal helped the company's top and bottom line.

On Monday, Tyson reported second-quarter adjusted earnings per share of $1.07 on revenue of $9.17 billion. Analysts polled by Reuters expected the firm to post earnings of 95 cents on revenue of $9.04 billion.


Tyson acquired Hillshire in 2014.

"This was a commodity company and now it's a proprietary company," Cramer said. "It worked because they guided up huge: [from] $ 3.85-$3.95 [a share] for the year, they go to $4.20-$4.30."

The stock rose 1.5 percent Monday and has climbed about 65 percent in the last 12 months.