AUSTIN, Minn. (AP) — Strong sales of Spam and Jennie-O products helped Hormel Foods' net income rise in its fiscal third quarter. The meat producer's revenue came in just above Wall Street expectations.
Hormel Foods Corp. said Thursday that it earned $111.2 million, or 41 cents per share, for the quarter. That's up 13 percent from $98.5 million, or 36 cents per share, during the same period a year earlier.
The performance met the expectations of analysts surveyed by FactSet.
Revenue for the period ended July 29 increased 5 percent to $2.01 billion from $1.91 billion, led by sales of Spam. This was slightly higher than the $2 billion that Wall Street forecast.
Revenue improved across all segments except refrigerated foods, which posted a slight decline.
The Jennie-O Turkey Store unit, which makes up 18 percent of the company's revenue, reported a 7 percent increase in its sales thanks to better sales of its fresh tray pack products and turkey burgers. Sales for the grocery products division rose 21 percent due to higher Spam sales and its MegaMex Foods joint venture. The segment, which makes up 15 percent of total sales, was also helped by sales of Don Miguel products.
The majority of Hormel's sales, 52 percent, come from the refrigerated foods unit. It reported flat sales for the quarter.
The Austin, Minn., company said Thursday that it still expects full-year earnings of $1.79 to $1.89 per share.
Analysts foresee earnings of $1.85 per share.