Hormel Foods Corp. (HRL) reported Wednesday a higher second-quarter profit, as sales grew 3 percent with four of its five segments registering sales gains. Earnings per share beat analysts' expectations, but the top line missed their view on weak refrigerated foods sales. The meat and food products firm also maintained its full-year earnings forecast.
Jeffrey Ettinger, chairman of the board, president and chief executive officer stated, "Our Jennie-O Turkey Store segment delivered another outstanding quarter, driven by value-added sales growth. Our International business also achieved impressive results, led by strong export sales."
The company noted that its Grocery Products and Specialty Foods segments returned to earnings growth during the quarter, while results from Refrigerated Foods segment were significantly pressured by lower pork operating margins.
Net sales in Refrigerated Foods declined 0.8 percent, while, Jennie-O Turkey Store segment sales increased 6.9 percent from the preceding year.
In the second quarter, net earnings attributable to the company increased to $127.89 million or $0.48 per share from $109.58 million or $0.40 per share reported last year. On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.42 for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter grew 3 percent to $2.01 billion, but came in below analysts' consensus estimate of $2.05 billion. Volume declined 2 percent from last year.
For fiscal year 2012, the company maintained its earnings guidance range of $1.79 - $1.89 per share, while twelve analysts project earnings of $1.81 per share for the year.
HRL closed Tuesday's regular trading at $29.19 on the NYSE. In the pre-market activity, the shares are up 2.77 percent.
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