UPDATE: Hormel Foods Posts Downbeat FQ4 Profit, Revenue Beats View

Hormel Foods

reported weaker-than-expected fiscal fourth-quarter earnings and lifted its quarterly dividend from $0.80 to $1 per share. The Austin, Minnesota-based company posted quarterly net income of $171.3 million, or $0.63 per share, compared to $157.3 million, or $0.58 per share, in the year-ago period. Its revenue rose 9% to $2.54 billion in the period. However, analysts were expecting earnings of $0.64 per share on revenue of $2.52 billion. Grocery Products operating profit slipped 21%, while volume declined 5% in the period. Refrigerated Foods operating profit gained 10%, while volume rose 1%. Jennie-O Turkey Store operating profit climbed 45%, while volume surged 7%. Specialty Foods operating profit dropped 14%, while volume increased 15%. International & Other operating profit climbed 3%, while volume rose 6% in the period. “We enjoyed a strong finish to the year, delivering record fourth quarter sales and earnings,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Our Refrigerated Foods and Jennie-O Turkey Store segments were able to capitalize on growth of value-added sales and higher meat commodity markets to lead the way.” For the full year, Hormel projects earnings of $2.45 to $2.55 per share, versus economists' estimates of $2.59 per share. Hormel shares fell 0.37% to close at $54.13 yesterday.