Del Monte Foods Co. (NYSE: DLM) said Thursday that its fiscal second-quarter profit climbed on higher sales of its food and pet products, according to Associated Press.
The company, whose brands include College Inn, Meaty Bone and its namesake, also lifted its full-year earnings forecast, citing lower costs and its strong results during the first half of the year.
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Del Monte Foods' second-quarter earnings rose 24 percent to $62.6 million, or 31 cents per share, from $50.4 million, or 25 cents per share, a year ago.
Quarterly results included an expense of 5 cents per share related to a recently closed notes offering and tender offer.
The performance surpassed the expectations of analysts polled by Thomson Reuters, who forecast a profit of 21 cents per share. These estimates typically exclude one-time items.
Sales for the three months ended Nov. 1 rose 6 percent to $958.9 million from $901 million, with consumer product sales increasing 9 percent to $536.8 million and pet product sales up 3 percent to $422.1 million.
However, the results fell short of Wall Street's estimate for total revenue of $973.4 million.
Del Monte Foods now anticipates earnings from continuing operations of 93 cents to 97 cents per share for 2010, up from a prior range of 88 cents to 92 cents per share.
The company expects annual sales to climb 4 percent to 6 percent from 2009's revenue of $3.63 billion, which would imply sales of approximately $3.77 billion to $3.85 billion.
Analysts predict 2010 profit of 93 cents per share on revenue of $3.82 billion.
Shares of Del Monte Foods gained 54 cents, or 4.9 percent, to $11.50 in afternoon trading. The stock has traded in a range of $6.19 to $12 over the last year.
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