Analysts had expected the maker of Dinty Moore stew, SPAM and its namesake meats to earn $95 million, or 35 cents a share, on revenue of $1.88 billion. Hormel also raised its full-year profit outlook to a range between $1.70 and $1.75 a share, up from its prior guidance for 2011 EPS between $1.67 and $1.73. Analysts had called for a full-year earnings of $1.72 a share.
Despite the beat-and-raise, Hormel shares were flat in premarket trading after closing 0.4% higher to $28.44 in Wednesday's trading session. In line with a growing trend among food makers, Hormel said strength in overseas markets helped it produce the recent quarter's strong results. Its business unit that comprises Hormel Foods International saw revenue grow 35% in the period. Major food makers such as Kraft Foods ( KFT), H.J. Heinz ( HNZ), McDonald's ( MCD - Get Report), among others, have all also reported stronger growth in emerging and international markets as consumer demand in North America slows. -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: email@example.com.
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