Shares of Hormel Foods Corp. /zigman2/quotes/209170265/composite HRL +0.06% dropped 4.3% in premarket trading Thursday, after the branded food company raised its full-year sales outlook but cut its profit view, citing expectations that high cost inflation will persist. The company also reported fiscal third-quarter net income to the quarter to July 31 that rose to $218.l9 million, or 40 cents a share, from $176.9 million, or 32 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of 41 cents. Sales grew 6.0% to a record $3.03 billion, to top the FactSet consensus of $3.00 billion, as grocery products sales rose 24.5% and refrigerated foods sales increased 2.2%, amid "strong" demand for foodservice products. For fiscal 2022, the company cut its EPS guidance range to $1.78 to $1.85 from $1.87 to $1.97, but raised its sales guidance to $12.2 billion to $12.8 billion from $11.7 billion to $12.5 billion. "We expect elevated cost inflation to persist, primarily related to operations, logistics and raw material inputs," said Chief Executive Jim Snee. "We view the majority of the escalated cost pressures we are currently absorbing as transient and likely to subside over the coming quarters." The stock has gained 4.1% over the past three months, while the SPDR Consumer Staples Select Sector ETF /zigman2/quotes/200697959/composite XLP +0.54% has slipped 0.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.75% has lost 3.6%.