Hormel Foods shares rise 13% after earnings beat

Shares of Hormel Foods rose sharply on Thursday after the packaged food company reported quarterly earnings that exceeded analyst expectations and reaffirmed its full-year sales and profit outlook. The stock climbed approximately 13% in afternoon trading following the announcement.

For its fiscal second quarter, which ended on April 26, Hormel reported adjusted earnings of 40 cents per share, surpassing the average analyst estimate of 36 cents. Net sales reached $2.97 billion, also ahead of Wall Street forecasts. The company noted that organic net sales, a non-GAAP measure that excludes the impact of a recent divestiture, increased by 3% compared to the same period last year.

Interim CEO Jeff Ettinger described the period as an excellent quarter, highlighting the company's sixth consecutive quarter of organic sales growth and double-digit growth in adjusted earnings. President John Ghingo pointed to broad-based strength across the business, citing particular demand for protein-focused products such as Jennie-O ground turkey, Applegate natural meats, and Spam exports.

Segment performance was mixed. While retail net sales were flat, the segment's profit rose by 13%. The foodservice...