UPDATE: Hormel Foods Posts Upbeat Q1 Earnings, Lifts Forecast

Hormel Foods Corp.

reported better-than-expected earnings for the fiscal first quarter and lifted its earnings forecast. The Austin, Minnesota-based company posted quarterly earnings of $172 million, or $0.64 per share, compared to $153 million, or $0.57 per share, in the year-ago quarter. On an adjusted basis, the company's earnings rose to $0.69 per share from $0.57 per share. Its sales climbed 7% to $2.4 billion. However, analysts were expecting earnings of $0.64 per share on revenue of $2.47 billion. Refrigerated Foods segment operating profit climbed 19%, while dollar sales rose 1% in the quarter. Jennie-O Turkey Store segment operating profit jumped 56%, while dollar sales rose 10%. Grocery Products non-GAAP adjusted segment operating profit dropped 8%, while dollar sales gained 2%. Specialty Foods segment operating profit dropped 13%, while dollar sales climbed 34%. Jeffrey M. Ettinger, chairman of the board, president and chief executive officer said, "We are off to an excellent start to our fiscal year with double-digit earnings growth and record sales in the first quarter." Ettinger added, "Refrigerated Foods also turned in an excellent quarter by driving increased value-added sales, aided by the benefit of lower pork costs. Grocery Products was challenged by high input costs and soft sales on some brands, while International & Other delivered increases despite difficult export markets." Hormel now expects 2015 adjusted earnings of $2.50 to $2.60 per share, versus earlier forecast of $2.45 to $2.55 per share. Hormel shares gained 0.77% to close at $56.14 yesterday.