- Hormel Foods Corporation on Thursday announced its earnings results for the third quarter, claiming an 8% rise in revenue to $2.16 billion from $2.01 billion last year and outperforming Wall Street estimates that anticipated revenue to hit only $2.12 billion.
- The company credited a 25% increase in grocery product revenue, which was helped by its recent $700 million Skippy peanut butter acquisition, as well as strong performance from Dinty Moore stew and Hormel Mary Kitchen hash.
- Additionally, Spam and Skippy saw positive results oversees, helping profits in Hormel's International and Other category to grow by 34%.
Hormel's Skippy acquisition appeared to be a move geared toward diversifying its offerings and strengthening its presence in China. Right now, the the purchase seems to be paying off. Additionally, Jeffrey Ettinger, chairman of the board, president and chief executive officer at Hormel, anticipated that the company will "achieve results consistent with [Hormel's] adjusted annual guidance range of $1.88 to $1.96 per share,” predicting that new marketing and promotions would boost performance of new products such as Hormel's Rev Wraps in the fourth quarter.