UPDATE 2-Tyson Foods raises 2021 revenue estimates on higher demand and prices
Adds forecast, segment details, shares, profit comparison
May 10 (Reuters) - Tyson Foods Inc TSN.N raised its full-year revenue forecast on higher prices for its meat products and strong recovery in demand from reopened restaurants and hotels across the country that also drove its second-quarter sales beat on Monday.
Higher raw material costs have led many U.S. meat producers, including Tyson Foods, to raise prices, while demand recovers following an easing of pandemic-led restrictions on dining out and increased preference for home-cooked food.
Tyson Foods now expects its beef division to post improved fiscal 2021 results compared to last year on the back of a near 2% rise in sales in the segment in the second quarter.
Overall, the company now expects fiscal 2021 revenue to be between $44 billion and $46 billion. It had previously forecast to touch the upper end of a range of $42 billion to $44 billion.
In the second quarter ended April 3, Tyson Foods' sales rose about 4% to $11.30 billion from a year earlier. Analysts on average were expecting $11.19 billion, according to IBES data from Refinitiv.
Higher product prices helped its chicken segment post a 4.6% growth, while its pork unit posted a 16.7% increase, even as volumes dropped.
Net income attributable to Tyson increased to $476 million, or $1.30 per share, from $376 million, or $1.03 per share, a year earlier.
Excluding items, Tyson Foods earned $1.34 per share, compared with estimates of $1.12.
Shares, up 22% this year, were about 1% higher in premarket trading.
(Reporting by Praveen Paramasivam in Bengaluru and Tom Polansek in Chicago; Editing by Shounak Dasgupta and Shinjini Ganguli)