Spam Maker Hormel Sees Net Top Estimates

Hormel Foods(HRL Quote), the maker of Spam, chili and Jennie-O Turkey products, reported fiscal second-quarter earnings of $80.4 million, or 59 cents a share, slightly higher than year-earlier earnings of $77.6 million, or 56 cents a share, as consumers ate more meals at home.

Revenue in the quarter rose to $1.6 billion from $1.59 billion a year earlier.

Analysts surveyed by Thomson Reuters expected Hormel to earn 50 cents a share on revenue of $1.68 billion.

"We have seen a continuation of some of the same trends we saw in the first quarter, as consumers seek value in retail channels while foodservice sales remain soft. Unlike the first quarter, however, we have seen improvement in sales of some of our convenience items, including our refrigerated entrees and our Compleats microwave meals," said CEO Jeffrey Ettinger.

Hormel said because of a better-than-expected first half of the year it now anticipates reporting full-year results in the upper end of its previously announced range of $2.15 to $2.25 a share.

Analysts expect fiscal-year earnings of $2.24 a share.