Hormel Foods

(HRL) - Get Report

on Tuesday posted higher first-quarter profit, as the company was able to raise prices as well as boost store sales.

The meat and food products company reported net earnings of $64.5 million, or 46 cents a share, up 24% from $51.8 million, or 37 cents, in the year-ago period. Revenue rose to total of $1.3 billion, from $1.1 billion in fiscal 2004.

Analysts expected earnings of 44 cents a share, according to Thomson First Call.

"On top of very good value-added growth in our turkey segment, strong market conditions and decreasing feed costs helped deliver the outstanding results," the company said. "We continue to see aggressive growth in our food-service businesses."

Minnesota-based Hormel forecast EPS of 38 cents to 44 cents a share for the second quarter. The company also increased full-year earnings guidance from $1.65 to $1.75 to $1.70 to $1.80.

The consensus forecasts are 41 cents and $1.76, respectively.

Hormel shares closed at $31.97 Friday, near a 52-week high,