Hormel Foods Corporation (NYSE:HRL) stock climbed Thursday after the packaged food maker reported stronger-than-expected second-quarter results, helped by resilient demand for protein-focused products and improving margins.

Quarterly Results Beat Estimates

Hormel Foods reported second-quarter adjusted earnings of 40 cents per share, topping analyst estimates of 36 cents per share.

Quarterly sales rose to $2.973 billion, ahead of Wall Street expectations of $2.954 billion. Organic net sales increased 3% during the quarter.

"We achieved our sixth consecutive quarter of organic top-line growth, expanded gross margins, and attained double-digit growth in adjusted earnings," Jeff Ettinger, interim CEO, said.

President John Ghingo said the company's teams are performing strongly across the organization, helping deliver solid results from its protein-focused product lineup.

The retail segment posted flat net sales, while organic net sales increased 1% despite a 2% decline in organic volume.

Foodservice organic volume rose 1% as net sales increased ...