Shares Tyson Foods (NYSE:) are up more than 2% in premarket trading Monday after the company issued a stronger-than-expected FY sales forecast.

TSN Q2 adjustedEPS was $2.29. This is an increase of $1.34 from the previous year and more than the consensus analyst estimate of $1.90 per shares. It reported that it made $13.12 billion in quarterly sales, an increase of 16% YoY. The figure is higher than consensus estimates of $12.85 trillion. However, it saw a 1.5% drop in sales during the quarter.

Tyson’s Q2 operating margin was 8.8%, compared with 6.4% last year. The average price increased by +17.6% during the quarter. Analysts were expecting +10.9%.

Tyson projects FY sales of between $52 billion-$54 billion. This is compared with its prior forecast range of $49billion to $51billion and the consensus projections of $51.8 billion.

Tyson targets productivity savings of $1 billion by FY 2024. This is in comparison to FY 2021’s cost base. It is anticipated that the company will meet its FY 2022 productivity savings goal.

Goldman Sachs analyst Adam Samuelson expects to see a positive reaction in TSN shares following today’s report.

“Margins/EBIT above-consensus in the three largest US segments (Beef, Chicken, Prepared Foods) and full-year earnings expectations increased despite ongoing inflationary pressures,” Samuelson said in a client note.

By Senad Karaahmetovic