Hormel Foods, the company behind brands such as Planters, Skippy, and Spam, reported its second-quarter revenue increased to $2.97 billion from $2.9 billion a year ago, surpassing analyst expectations of $2.96 billion.

Revenue has now achieved organic growth for six consecutive quarters, indicating steady progress in the company's strategic transformation. Hormel's stock rose 6.8% in pre-market trading to $22.39.

For the quarter, the company reported net earnings of $157.5 million, or $0.29 per share, compared to $180 million, or $0.33 per share, in the prior-year period. Adjusted earnings per share were $0.40, exceeding the analyst consensus of $0.35 as tracked by FactSet.

Retail product volume declined by 2% year-over-year, with sales remaining relatively flat. The company noted strong performance from brands like Jennie-O turkey, Applegate meats, and Herdez products, but this growth was partially offset by the divestiture of its non-core private-label nut snack business.

Sales through the foodservice channel increased by 6%, while international sales grew by 4%. Both segments saw a 1% increase in volume.

Hormel revised its full-year guidance, now expecting net earnings per share in the range of $1.28 to $1.37, down from the previous forecast of $1.37 to $1.46. The company anticipates full-year adjusted earnings per share between $1.43 and $1.51, with revenue projected to be between $12.2 billion and $12.5 billion.

Analysts surveyed by FactSet had forecast full-year adjusted earnings per share of $1.46 and revenue of $12.29 billion. The guidance adjustment is primarily attributed to the sale of the company's whole-bird turkey business, which is expected to reduce full-year net revenue by approximately $50 million. However, the overall revenue target of $12.2 billion to $12.5 billion remains unchanged.

Hormel President Jim Snee stated, "Our teams executed effectively, delivering strong results across our meat protein portfolio. All business segments achieved both revenue and segment profit growth in the second quarter, demonstrating the overall strength of our business and the effectiveness of our transformation strategy."

The company continues to advance its cost-reduction and efficiency initiatives, restructure its distribution network, and invest in technology upgrades. Previously, the company raised product prices in response to rising commodity costs, and robust market demand for meat proteins continues to support its performance.