Hormel Foods Corp. reported net income for the quarter ended Jan. 28 of $303.1 million, up from $235.2 million in the year-ago period.
Diluted earnings rose 27% to 56 cents per share in the first fiscal quarter of 2018 from 44 cents per share in the prior year. Hormel recorded a one-time noncash tax benefit of $68 million and a $5 million charge related to the new U.S. tax law. "Tax reform will have a clear benefit and allow us to increase investments into our business to drive long-term profitable growth," said CEO Jim Snee.
Net sales for the packaged foods and meats producer came in at $2.33 billion during the quarter, higher than the $2.28 billion in the prior-year period. Operating income was down to $306.6 million in the quarter from $355.4 million of the previous year.
The company raised its outlook for full fiscal year 2018 to a per share range of $1.81 to $1.95, compared to previous guidance of $1.62 to $1.72. The company maintained its expectations for fiscal 2018 net sales in the range of $9.70 billion to $10.10 billion.
For fiscal 2018, the company is projecting a slower-than-expected recovery at its Jennie-O Turkey Store as it struggles with "difficult operating environment in the turkey industry," Snee said. The store saw a dip in net sales during the first quarter of fiscal 2018 to $390.7 million from $421.0 million in the prior year.
Hormel declared a dividend of 18.75 cents per share for the quarter, up from 17 cents per share of the previous year.