said increased food prices helped second-quarter earnings rise sharply, beating analysts estimates, and also forecast third-quarter and full-year profits in line with estimates.
The Austin, Minn., food processor said it earned $53.6 million, or 38 cents a share, up from $33.8 million, or 24 cents a share, in the same period last year. Analysts expected the company to earn 33 cents a share.
Boosted by rising pork and beef prices, second-quarter revenues rose to $1.14 billion, a 14% increase from a year ago, when revenue was $1.09 billion. According to the government, April prices for meat, poultry, fish and eggs were up 8.5% from the same period a year ago.
The company said its refrigerated foods unit saw a 167% increase in quarterly operating profit, rising to $37.2 million from $13.9 a year ago.
Hormel also took a one-time charge of 2 cents a share as part of its early retirement buyout plans, but saw a 3-cents-a-share gain from the sale of its Campofrio unit.
Hormel said it expects to earn between 30 and 36 cents a share during its third quarter, and issued a full-year forecast of $1.50 to $1.62 a share. Analysts estimate an average gain of 33 cent a share for the quarter and $1.57 for the full year, according to Thomson First Call.