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Hormel Hits Targets

Guidance is in line.

Hormel (HRL) - Get Hormel Foods Corporation (HRL) Report matched first-quarter targets and guided in line for the second quarter and year.

The Austin, Minn., Spam spinner made $75 million, or 54 cents a share, for the quarter ended Jan. 28, up from the year-ago $69 million, or 50 cents a share. Revenue rose to $1.5 billion from $1.42 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a 54-cent profit on sales of $1.49 billion.

"The sharp rise in grain markets has added a new dynamic to our business and to the food industry in general," the company said. "We anticipate higher grain costs will continue to burden our turkey operation and we are working hard to find ways to offset this extra expense, including through advances in pricing."

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Hormel guided to earnings of 47 to 53 cents a share for the second quarter and $2.15 - $2.25 for the year. Analysts were looking for 51 cents for the quarter and $2.19 for the year.