Hormel Foods tops quarterly estimates on strong demand for protein-rich foods
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The company logo for Hormel Foods is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 9, 2019. REUTERS/Brendan McDermid
May 28 (Reuters) - Skippy peanut butter maker Hormel Foods beat second-quarter sales and profit estimates on Thursday, helped by strong demand for its chicken and turkey products.
Shares of the company, which reiterated its annual targets, rose about 8% in premarket trading.
Persistent inflation and tariff-related volatility have led U.S. shoppers to stock up on pantry staples to cook meals at home rather than spend on expensive dine-outs, boosting sales for Hormel's products.
With its range of protein-rich meats and snacks, the company has also benefited from growing demand for high-protein foods, driven largely by Gen Z's preference for convenient, protein-heavy options.
Hormel posted a revenue of $2.97 billion for the quarter ended April 26, above analysts' average estimate of $2.95 billion, according to data compiled by LSEG.
Its adjusted net income for the quarter stood at 40 cents per share, beating expectations of 36 cents per share.
(Reporting by Koyena Das in Bengaluru; Editing by Diti Pujara and Jonathan Ananda)
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