Hormel Foods Corp. said Wednesday it had net income of $146.9 million, or 54 cents a share, in its fiscal third quarter, up from $138 million, or 51 cents a share, in the year-earlier period. Excluding Applegate transaction costs, per-share earnings came to 56 cents, ahead of the FactSet consensus of 54 cents. Sales fell 4% to $2.2 billion, but matched the FactSet consensus. Chief Executive Jeffrey Ettinger said the company's Jennie-O Turkey Store segment delivered record sales and profit, overcoming the impact of an avian flu outbreak in a number of states that led to massive culls of poultry. "Grocery products drove earnings growth with favorable input costs and increased sales of HORMEL(R) chili and SKIPPY(R) peanut butter," he said. Specialty foods was another highlight, he said. Hormel is now expecting full-year EPS of $2.57 to $2.63, up from prior guidance of $2.50 to $2.60. Shares were not yet active in premarket trade, but have gained 16% in the year so far, while the S&P 500 is up 1.9%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below