J&J Snack Foods' fiscal Q3 earnings rose 47% to US$23.3M, revenues climbed 9% to US$206.3M, aided by US$6.6M gain on purchase of a business; company said in April that it expected to purchase several frozen food lines from ConAgra Foods

Cindy Allen

PENNSAUKEN, New Jersey , July 26, 2011 (Associated Press) – J&J Snack Foods Corp., the company behind SuperPretzel soft pretzels and Luigi's Italian ice desserts, said Monday that its net income rose 47 percent for the fiscal third quarter, aided by a gain on the purchase of a business.

Net income climbed to $23.3 million, or $1.24 per share, for the quarter ended June 25, from $15.9 million, or 89 cents per share, in the year-earlier period.

The latest quarter included a $6.6 million gain on a "bargain purchase" of a business, the company said, without identifying the business. J&J had said in April that it expected to complete the purchase of several frozen food lines from ConAgra Foods Inc. in May for an undisclosed sum.

J&J said it would have reported earnings of $16.7 million, or 89 cents a share, without the gain.

On that basis, analysts were expecting earnings of 84 cents a share, according to FactSet.

Revenue rose 9 percent to $206.3 million, beating analysts' estimates of $204.2 million. A year earlier, J&J posted revenue of $189.7 million.

Gerald B. Shreiber, J&J's president and CEO, said "a particularly strong performance by our Icee group highlighted the quarter."

The company's shares lost 40 cents to close at $50.73 before the earnings were released.

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