* Q2 EPS 48 cts vs. Wall Street view 42 cts
* Q2 sales $2.01 billion vs. Wall St view $2.05 billion
* Hormel affirms FY EPS view
May 23 Hormel Foods Corp posted a
higher-than-expected quarterly profit on Wednesday, boosted by
Jennie-O turkey sales and lower pork and beef costs.
The lower pork and beef costs helped boost profits in the
company's grocery business, which sells Spam canned meats.
But sales were still soft for Hormel's microwave products
and Dinty Moore stew.
Several packaged food companies have said consumers were
spending less on groceries, and Hormel's sales came in slightly
below analysts' expectations. Earlier this week, Campbell Soup
Co reported weak soup sales.
Hormel said earnings had risen to $127.9 million, or 48
cents per share, in the second quarter ended on April 29 from
$109.6 million, or 40 cents per share, a year earlier.
Analysts on average had forecast 42 cents a share, according
to Thomson Reuters I/B/E/S.
Net sales increased 2.7 percent to $2.01 billion. Analysts
were expecting $2.05 billion.
Hormel, which expects strong results from its other segments
to more than offset weak operating margins in its pork business,
maintained its full-year earnings outlook of $1.79 to $1.89 per
share. Analysts on average forecast $1.81.