Shares of Tyson Foods rallied as much as 2 percent Monday after the company posted strong fiscal third-quarter earnings, helped in part by lower costs for feed and livestock.
The U.S. meat processor reported adjusted earnings of $1.21 per share, beating analysts estimates of $1.06 per share. The company posted $9.4 billion in revenue, edging past analysts estimates of $9.33 billion.
Donnie Smith, CEO of Tyson Foods, said in a press release the company was able to deliver higher, more stable earnings through its "differentiated business model that emphasizes growth in prepared foods and value-added chicken."
"We produced record third quarter earnings per share, operating income and return on sales," he said in the statement. "All operating segment results were in or above their normalized operating margin ranges, with the Chicken segment delivering a record 13.9 [percent] return on sales."
The company said it expects domestic protein production—chicken, beef, pork and turkey—to increase about 2 to 3 percent from fiscal 2016 levels in fiscal 2017.
It also updated its expected full-year adjusted earnings to between $4.40 a share and $4.50 a share, from between $4.20 a share and $4.30 a share.
Shares of Tyson have increased significantly this year, surging nearly 39 percent.
TSN 2016 Stock