US: Hormel shares jump on Q3 earnings
Spam-maker Hormel has reported a jump in profits for the first nine months of the year
Shares in Hormel Foods jumped today (21 August) as the US group reported third-quarter earnings that beat Wall Street expectations.
Hormel posted earnings per share of US$0.51 for the quarter to 27 July. The analyst consensus estimate was for earnings of US$0.48 cents per share.
The Spam maker reported "record" sales and earnings for the third quarter. Net profit increased to US$139m, compared with US$113m a year earlier. Operating profit was up at US$215m, versus US$181m.
Sales reached US$2.28bn, against US$2.16bn in the previous year's third quarter.
The quarterly results contributed to higher sales and profits for the first nine months of its financial year.
Net profit was US$434m, compared with US$372m a year ago. Operating profit was also up, hitting US$668m versus US$566m a year earlier.
Not all Hormel's divisions saw profits rise, with its grocery products division seeing sales rise but facing high input costs. Operating profit from Hormel's speciality foods arm was also down.
Group-wide sales rose 5.4% to US$6.77bn, with all divisions bar speciality foods seeing sales increase. The end of a contract that saw Diamond Crystal Brands sell sugar substitutes into the foodservice channel hit sales from speciality foods.
Shares in Hormel had risen 5.95% to US$50.59 per share today (21 August) at 17:19 BST.
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