Del Monte Q1 profit tops estimates, shares rise
Del Monte Foods Co's quarterly profit handily beat Wall Street estimates on price increases and lower costs, prompting it to raise its full-year forecast for earnings from continuing operations.
Shares of the company rose 12 percent in pre-market trade.
For the first quarter, the maker of Del Monte canned fruit, Meow Mix cat food and Pup-Peroni dog treats, said profit was $58.6 million, or 30 cents a share, compared with a loss of $10.1 million, or 5 cents a share, a year earlier.
Revenue grew 12 percent to $813.7 million.
Analysts on average were expecting it to earn 4 cents a share, on revenue of $767.1 million, according to Reuters Estimates.
For fiscal 2010, the San Francisco-based company raised its per-share earnings view from continuing operation to 88 cents to 92 cents, up from its prior view of 76 cents to 80 cents.
Del Monte shares were at $11.59 Thursday before the bell. They closed at $10.36 Wednesday on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Ratul Ray Chaudhuri)
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