Snack-food maker Lance ( LNCE) reported a better-than-expected first-quarter profit, buoyed by higher selling prices and the acquisition of Archway Cookies.

As a result, the company raised its full-year outlook. Lance now expects earnings in the range of $1.10 to $1.20 a share compared with its prior view of $1.00 to $1.15 a share.

The hike in its forecast propelled shares 12% higher in morning trading to $23.

During the quarter Lance posted a profit of $6.5 million, or 20 cents a share, compared with $645,000, or 2 cents a share, in the year-ago period. Excluding the September peanut-butter recall, earnings were 25 cents a share. Analysts expected earnings of 16 cents a share before charges.

Revenue rose 9% to $215.8 million.

The company said its purchase of Archway Cookies in December bolstered both revenue and profit, raising earnings 2 cents a share.

The gain offset slushy sales of peanut butter crackers in the wake of a salmonella outbreak that began in September. Although none of Lance's products were taken off the shelves, consumers on the whole shunned products containing peanut butter, a trend that the company said damaged its quarterly results by $2.5 million.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.