Del Monte Q2 profit beats Street; raises FY10 view
Price increases put in place a year ago boosted quarterly profit at Del Monte Foods Co and prompted the company to raise its full year earnings view, sending shares up 5 percent Thursday morning.
For the fiscal 2010, the maker of Meow Mix cat food, Del Monte canned fruit and Milk-Bone dog treats now expects to earn between 93 cents a share and 97 cents a share from continuing operations -- up from the 88 cents to 92 cents a share it forecast in September.
Analysts, on average were expecting it to earn 93 cents a share, on revenue of $3.82 billion, according to Thomson Reuters I/B/E/S.
As we enter the holiday season, we are pleased with the early look at our developing merchandising initiatives and the execution of our promotional and pricing strategy, Chief Executive Richard Wolford said in a statement.
For the second quarter ended Nov. 1, Del Monte said profit from continuing operations was $62.6 million, or 31 cents a share, compared with $27.3 million, or 14 cents a share, a year earlier.
Sales came in at $958.9 million -- a rise of 6.4 percent.
Analysts were looking at a profit of 21 cents a share, on revenue of $973.4 million.
Shares of the company were up at $11.50 in trading before the bell Thursday. They had closed at $10.96 Wednesday on the New York Stock Exchange.
(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anthony Kurian)
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