US food group Hillshire Brands has outlined improved sales and earnings forecasts after a “strong” third quarter.
The Jimmy Dean meats owner now expects its annual sales to increase at a rate “in the low single digits”. When the company reported its second-quarter results in February, it forecast sales to grow “slightly”.
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Hillshire forecast its adjusted diluted earnings per share for the year would be “at the high end of the previously provided range”. In August, Hillshire had estimated its earnings would fall in a range of being flat year-on-year to down at a mid-single digit rate.
The new forecasts, issued on Monday as Hillshire gave its results for the third quarter to 29 May, sent its shares up in New York. The stock closed up over 3.4% on Monday and rose another 1.2% on Tuesday.
Hillshire booked adjusted income from continuing operations of US$57m for its fiscal third quarter. The result compared to $43m a year earlier. Adjusted operating income rose from $72m in last year’s third quarter to $92m.
The improved profits came in part due to higher sales. Net sales increased 3.4% to $955m.
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