Hormel Foods Posts Upbeat Q3 Profit, Lifts Full-Year Forecast

reported better-than-expected earnings for its fiscal third quarter and raised its earnings outlook for the full year. The Austin, Minnesota-based company reported quarterly net earnings of $146.9 million, or $0.54 per share, compared to $138.0 million, or $0.51 per share, in the year-ago period. Excluding Applegate transaction costs, the company's non-GAAP earnings rose to $0.56 per share from $0.51 per share. Its sales slipped 4 percent year-over-year to $2.2 billion. However, analysts were expecting earnings of $0.55 per share on revenue of $2.26 billion. The average estimate among 9 Estimize users was for earnings of $0.57 per share and revenue of $2.25 billion. Refrigerated Foods segment operating profit rose 9 percent in the quarter, while Jennie-O Turkey Store segment operating profit shrank 45 percent. Grocery Products segment operating profit climbed 57 percent in the latest quarter, while Specialty Foods segment operating profit jumped 79 percent. International & Other segment operating profit gained 3 percent in the recent quarter. "Our balanced business model prevailed once again this quarter, as we were able to overcome the significant challenge of avian influenza in our Jennie-O Turkey Store segment to deliver record earnings and volume sales," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. "Looking forward to the fourth quarter, we expect a strong finish to the year from our Specialty Foods segment with the fast-paced growth and improved cost structure of our MUSCLE MILK® protein nutrition products," added Ettinger. The company now expects 2015 adjusted earnings of $2.57 to $2.63 per share, versus prior forecast of $2.50 to $2.60 per share. Hormel Foods shares fell 1.37 percent to close at $60.50 yesterday.