On Thursday, Dr Pepper Snapple Group Inc. (NYSE: DPS), which spun off from Cadbury Schweppes (OTC: CSGWF) last month, and canned foods manufacturer Del Monte Foods Co. (NYSE: DLM) both reported double-digit profit growth for their fourth quarters, but still missed analysts' expectations. Smithfield Foods Corp. (NYSE: SFD), the U.S.'s largest hog producer and pork processor, said its first-quarter profits tumbled, hurt by rising grain costs and falling hog prices.
Plano, Texas-based Dr Pepper reported that its first-quarter earnings surged 38% from a year ago to $95 million, or 38 cents per share, as the company raised prices to offset lower volume and rising commodity costs. Adjusted for a restructuring charge, earnings were 36 cents per share. Sales for the three months ended March 31 grew 3% to $1.31 billion.
Analysts surveyed by Thomson Financial had expected earnings of 41 cents per share on revenue of $1.27 billion.
Dr Pepper shares rose more than a dollar, or 4%, in morning trading to $25.00, just shy of the price at which the stock began trading last month.
San Francisco-based Del Monte said its fiscal fourth-quarter profit rose 37% from a year ago to $50.4 million, or 25 cents per share, boosted by strong sales in both its consumer products and pet divisions. Adjusted for a transformation-related charge, earnings were 21 cents per share. Sales for the three months ended April 27 rose 11% to $1.04 billion.
Analysts polled by Thomson Financial had forecast quarterly earnings of 26 cents per share on sales of $1.01 billion.
For the full year, income rose 18% to $133.1 million, or 66 cents per share, and sales rose 9% to $3.74 billion.
In morning trading, Del Monte shares fell $1.38, or 10%, to $7.93. Shares are down 15.3% year to date.
Smithfield, Virginia-based Smithfield reported that fourth-quarter profits fell 94% from a year ago to $2.4 million, or 2 cents per share, even though revenue for the quarter ended April 27 was up 20% to $2.87 billion.
Analysts polled by Thomson Financial had expected a profit of 7 cents per share on revenue of $3.55 billion.
The unexpected results sent Smithfield shares falling 4.6%, or $1.38, to $28.75 in morning trading. Shares are down 11.7% in the past year.
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