Private label food and food-related product distributor
Performance Food Group
said on Tuesday that its second-quarter and full-year profit will exceed Wall Street's estimates, due primarily to the stronger-than-expected performance of its fresh-cut division.
The company expects to earn 45 cents to 47 cents a share in the quarter, up from 28 cents a year ago and ahead of the consensus estimate of 40 cents provided by Thomson Financial/First Call. For the full year, Performance sees earnings of $1.48 to $1.50 a share, ahead of the consensus estimate of $1.44.
Performance said in a press release that each of its operating segments saw growth in 2002, and it is especially pleased with the performance of its fresh-cut segment. "As a result of our acquisition of Fresh Express, the second quarter is the strongest period for our fresh-cut business," the company said.
The company said that its full-year results will be hurt by increased expenses from the launch of its new fresh-cut fruit business, but added that its earnings should remain strong for the rest of the year.
Shares of Performance Foods closed at $30 before the news Monday.