(Reuters) - Hormel Foods Corp (HRL.N) reported a higher-than-expected quarterly profit, helped by strong sales for products like its Spam lunchmeat, while Campbell Soup Co's (CPB.N) results fell short as deep promotions failed to lure shoppers.

Hormel and Campbell both make easy-to-prepare meals like canned soups and stews, which analysts say are popular in tough economic times as people dine out less.

Sales in Hormel's grocery products business rose 24 percent, driven by growth in the company's namesake chili and hash, Compleats microwave meals and Spam. The refrigerated foods unit's sales jumped 26 percent, led by Hormel party trays and pepperoni and Natural Choice deli meats.

Hormel forecast fiscal 2011 earnings above Wall Street estimates, despite expected pressure from higher raw material and grain costs.

Meanwhile, sales of Campbell's condensed soups used for cooking rose 7 percent. But sales of other condensed soups and ready-to-serve soups were weak, as the company's increased promotions did not match even better deals by rivals.

The world's biggest soup company, which competes with General Mills Inc's (GIS.N) Progresso brand, warned earlier this month that results for its fiscal first quarter were weaker than expected and cut its forecast for the year, sending its shares down nearly 4 percent.

In Tuesday morning trading, Campbell shares were down 1.3 percent at $34.39, while Hormel rose 3.1 percent to $49.40.

The results from Campbell and Hormel come a day after top meat producer Tyson Foods Inc (TSN.N) forecast fiscal 2011 sales above Wall Street estimates, helped by better export markets and higher prices for its prepared foods.

HORMEL SALES BEAT ESTIMATES

Hormel reported a profit of 90 cents per share for the fourth quarter ended on October 31, up from 77 cents a year earlier and above the analysts' average estimate of 79 cents, according to Thomson Reuters I/B/E/S. [ID:nN23117814]

Sales jumped 23 percent to $2.06 billion, topping analysts' estimates of $1.87 billion.

While Hormel had "a solid quarter," Morningstar analyst Erin Swanson said the company faces some challenges from potentially higher prices for grain and hogs. She also noted that the latest quarter had one more week than the year-earlier period, and the company did not break out that benefit.

Hormel said it expects fiscal 2011 earnings per share of $3.10 to $3.20. Analysts on average had been expecting $3.05.

Campbell's profit fell to 82 cents per share in the first quarter ended on October 31 from 87 cents a year earlier. Analysts were expecting 83 cents.

Sales slipped 1.4 percent to $2.17 billion, missing analysts' expectations for $2.2 billion.

Campbell said margin pressures were likely to persist through the current second quarter, and that it planned to focus more on advertising and brand-building, instead of promotions, in the second half of the year.

The company forecast fiscal 2011 earnings-per-share growth of 2 percent to 4 percent and net sales growth of 1 percent to 3 percent, including an estimated 1 percentage point benefit from currency exchange rates.

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