Hormel Guides Higher

It sees a strong finish to 2006.
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Hormel (HRL) - Get Report guided higher for the fourth quarter and 2007, citing strong results in specialty foods, pork and turkey.

The Austin, Minn., maker of Spam said it expects to make 63 to 65 cents a share for the fourth quarter, up from previous guidance of 57 to 63 cents. Analysts surveyed by Thomson Financial were looking for 59 cents.

For 2007, the company expects to make $2.15 to $2.25 a share, compared with a $2.16 Wall Street estimate.

"I was pleased to see a stronger than expected finish from several areas of our business," said CEO Jeffrey M. Ettinger. "In particular, our Specialty Foods segment had an exceptional finish to an outstanding year. On the protein side of the business, our Foodservice results for both pork and turkey were better than expected.

"While the higher grain markets are expected to be a burden to our business in 2007, we are excited about the growth opportunities from our value-added business."