AUSTIN, Minn. (AP) — Hormel Foods Corp.'s fiscal third-quarter net income climbed 15 percent on solid sales of its grocery items and Jennie-O turkey products as well as strength abroad.
The maker of Dinty Moore stew and its namesake meats also lifted its full-year earnings outlook on Thursday due to its quarterly performance.
Hormel earned $98.5 million, or 36 cents per share, for the period ended July 31. That's up from $85.4 million, or 32 cents per share, a year earlier.
The performance surpassed the 34 cents per share that analysts polled by FactSet expected.
Per-share results reflect a 2-for-1 stock split that went into effect on Feb. 1.
Revenue rose 10 percent to $1.91 billion from $1.73 billion, beating Wall Street's $1.87 billion.
Like many companies, Hormel benefited from strong results overseas. Its "all other" segment, which is mostly made up of Hormel Foods International, reported a 35 percent revenue increase on stronger fresh pork exports and better performances by its international joint ventures.
The company's grocery products segment — which comprises 13 percent of its total revenue — saw its revenue improve thanks to strong sales of SPAM and Mexican products from its MegaMex Foods joint venture. The unit also reported better sales of Hormel Compleats microwave meals.
Jennie-O Turkey saw its revenue rise 11 percent. The division makes up 17 percent of Hormel's total revenue.
The refrigerated foods segment — which makes up more than half of Hormel's total revenue — had a 10 percent increase in revenue due to sales of items such as its namesake pepperoni, bacon and party trays. Specialty foods revenue climbed 11 percent on better sales of store brand canned meats and sugar.
Hormel, based in Austin, Minn., now expects 2011 earnings of $1.70 to $1.75 per share, up from $1.67 to $1.73 per share. Analysts predict earnings of $1.71 per share for the year.