08:44 AM EDT, 05/30/2024 (MT Newswires) -- Hormel Foods ( HRL ) lifted the low end of its full-year earnings outlook on Thursday, even though the food maker's fiscal second-quarter sales decreased from a year earlier and missed market expectations.

The company now anticipates per-share adjusted earnings between $1.55 and $1.65 for fiscal 2024, compared with its previous guidance range of $1.51 to $1.65. The consensus on Capital IQ is for normalized EPS of $1.59.

"To reflect our solid first-half performance and our expectations for continued growth from our foodservice and international segments, ongoing improvements across our supply chain, and further benefits from our transform and modernize initiative, we are updating our full-year earnings outlook," Chief Executive Jim Snee said in a statement.

Hormel reiterated its sales forecast of $12.2 billion to $12.5 billion, while the Street is looking for $12.26 billion. Annual declines in whole-bird turkey markets and an unplanned production interruption at the company's facility in Virginia are set to weigh on sales and earnings, it said.

For the quarter ended April 28, adjusted EPS ticked down to $0.38 from $0.40 the year before, but topped the Street's view for $0.36. Sales slipped 3% to $2.89 billion, trailing analysts' $2.97 billion estimate. Total volume fell 3.6%.

Revenue for retail products dropped 6.7% to $1.79 billion, due to lower volume and prices for whole-bird turkeys and sales reduction sales in the convenient meals and proteins vertical, the company said. Foodservice sales gained 5.7% to $932 million buoyed by the bacon, premium prepared proteins and turkey categories. International revenue slid to $166.8 million from almost $180 million in the prior-year quarter.

"We delivered a strong first half, with consecutive quarters of better-than-expected earnings, a significant improvement in operating cash flows, continued foodservice strength, recovery in our international business and stable volumes across our business," Snee said. "We remain on track to deliver on our commitments to improve our business and drive long-term shareholder returns and growth."

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