NEW YORK (TheStreet) -- Shares of Hormel Foods (HRL) are higher by 3.64% to $57.82 at the start of trading on Wednesday morning, after the meat and food products manufacturer and seller posted better than expected earnings for the 2015 second quarter.
Hormel recorded a 29% rise in earnings to 67 cents per diluted share. Analysts polled by Thomson Reuters had forecast for earnings of 62 cents per share.
Net sales grew by 1.5% to $2.28 billion, just shy of the $2.40 billion analysts were anticipating.
Hormel issued a warning regarding its Jennie-O Turkey Store business, which it said would be "significantly challenged" by the avian flu outbreak in the U.S.
"Jennie-O Turkey Store entered the quarter with excellent momentum and drove robust sales and earnings gains, but exited the quarter with substantial supply chain challenges brought on by avian influenza," company CEO Jeffry Ettinger said in a statement.
Separately, TheStreet Ratings team rates HORMEL FOODS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate HORMEL FOODS CORP (HRL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow."