MILWAUKEE — Sales of Hormel foods like Spam, Dinty Moore stews and Chi-Chi's Mexican products climbed more in the fiscal second quarter, the company said yesterday as it reported a 4 percent rise in profit that was far better than analysts were expecting.

Sales of those value-priced items have been rising at least since last year as shoppers look to cut their grocery bills. In the latest quarter, brands such as Spam and Hormel Chili posted double-digit sales increases. Some have come to see sales of Spam as an economic indicator — if sales go up, that signals weakness because consumers are trying to save money.

But analysts say a rise in sales of Hormel's higher-priced convenience items in the latest quarter could likewise illustrate consumer sentiment. Those gains are reversing slumps from last year, showing that discretionary spending may be on the uptick, KeyBanc Capital Markets analyst Akshay Jagdale said.

Austin, Minn.-based Hormel Food Corp. said sales of its Compleats microwave meals grew in the quarter — though it didn't say by how much.

Hormel earned $80.4 million, or 59 cents per share, for the period ended April 26, up from $77.6 million, or 56 cents per share, a year earlier. Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, predicted a profit of 50 cents per share.

Sales were essentially flat at $1.6 billion, missing Wall Street's estimate of $1.68 billion. The company saw weak results from the foodservice division even as sales in its grocery products division, which includes Spam and Dinty Moore, rose 4 percent.

Shares rose 70 cents, or 2.1 percent, to $33.65 yesterday.