Whole Foods Market Inc on Tuesday posted third quarter earnings that beat Wall Street's expectations, as sales rose, and the seller of organic and gourmet food products raised its full-year earnings forecast.

Its shares shot up more than 10 percent in extended trade, after closing at $24.82 on the Nasdaq.

Austin, Texas-based Whole Foods said net income rose to $42.8 million, or 25 cents per share, for the fiscal third-quarter ended July 5, from $33.9 million, or 24 cents per share, a year earlier.

Analysts, on average, expected 20 cents a share, according to Reuters Estimates.

Sales rose to $1.88 billion from $1.84 billion.

Whole Foods raised its full-year per-share earnings forecast to 80 cents to 82 cents, including some asset impairment charges. It had previously expected to earn 65 cents a share to 70 cents a share on that basis.

The company, which specializes in organic, natural and gourmet products, has cut jobs and pared spending as it works to be more competitive on prices amid a weak economy.

(Reporting by Aarthi Sivaraman; editing by Carol Bishopric)