The Austin, Minn.-based maker of meat products such as cold cuts and spam and shelf-stable microwavable entrees booked net earnings of $109.6 million, or 40 cents a share, compared with a year-ago profit of $78.5 million, or 29 cents a share, matching the Street’s view.
Revenue for the three months ended May 1 was $2 billion, up 15% from $1.7 billion a year ago, ahead of average analyst estimates polled by Thomson Reuters of $1.82 billion.
“We are pleased to report double-digit growth in both earnings and sales for the quarter,” Hormel CEO Jeffrey Ettinger said in a statement. “We are also gratified to attain sales growth in all five of our segments.”
Sales were fueled by a 7% improvement in volume, led by profit gains in its refrigerated foods, Jennie-O Turkey Store and grocery products. Grocery profits climbed on strong core products sales, while refrigerated foods jumped on higher pork operating margins.
Given the strong results, the company raised its fiscal earnings guidance to a range of $1.67 to $1.73 from its earlier view of $1.62 to $1.68 a share. Wall Street is expecting earnings of $1.70.