Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, June 11, 2010

Article Excerpt

DEL MONTE FOODS CO., $15.28, New York symbol DLM, rose 7% this week after it reported better-than-expected earnings for its latest fiscal year. Del Monte makes canned fruits, vegetables, sauces and soups. It also makes pet food under the Meow Mix, 9Lives and Milk-Bone brands. The company earned $242.0 million in the year ended May 2, 2010. That’s up 63.8% from $147.7 million in the prior year. Earnings per share rose 60.8%, to $1.19 from $0.74, on more shares outstanding. If you exclude a charge related to the early repayment of senior notes, Del Monte would have earned $1.30 a share in the latest year. That easily beat the consensus estimate of $1.22 a share. A big part of the earnings gain came from Del Monte’s continuing drive to cut costs and improve productivity. For example, it has moved some plants to cut the distance between them and reduce shipping costs. As well, the company is selling more pet food, which generates higher…