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UPDATE: Hormel Foods FQ3 Profit Beats Estimates

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Hormel Foods (NYSE: HRL) reported better-than-expected fiscal third-quarter profit.

The Austin, Minnesota-based company posted quarterly net earnings of $138.0 million, up from $113.6 million, in the year-ago period. Its earnings per share rose 21% to $0.51 from $0.42.

Its sales gained 6% to $2.3 billion. However, analysts were expecting earnings of $0.48 per share on revenue of $2.23 billion.

Hormel's Grocery Products operating profit fell 36%, while sales dropped 3% in the quarter. Refrigerated Foods segment profit climbed 101%, while sales rose 12%. Jennie-O Turkey Store segment profit jumped 42%, while sales increased 4%.

The Specialty Foods segment's operating profit declined 25%, while sales declined 10%. The International & Other segment's profit surged 12%, while sales gained 18%.

Jeffrey M. Ettinger, chairman of the board, president and chief executive officer said, “Strong demand for pork and turkey, and increased sales of value-added products in our Refrigerated Foods, Jennie-O Turkey Store and International & Other segments more than offset a challenging quarter for our Grocery Products and Specialty Foods segments.”

Hormel Foods expects FY14 earnings of $2.17 to $2.27 per share, versus analysts' estimates of $2.19 per share.

Hormel Foods shares gained 0.61% to $48.15 in after-hours trading.

 

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