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.
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