Hormel Foods Corp. Reports Disappointing Financial Results

by webmaster

Shares of Hormel Foods Corp. (HRL) plummeted 3.4% in premarket trading on Thursday, reaching a three-month low. The parent company of popular brands such as Planters, Skippy, Spam, and Hormel experienced lower-than-expected profit and sales in the fiscal third quarter, prompting a downward revision of its full-year outlook.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Weak Q3 Performance

In the quarter ending July 30, Hormel’s net income dropped to $162.7 million, or 30 cents per share, compared to $218.9 million, or 40 cents per share, in the same period last year. Adjusted earnings per share, excluding nonrecurring items, also fell slightly below expectations at 40 cents per share, failing to meet the FactSet consensus of 41 cents.

Moreover, sales declined by 2.3% to $2.96 billion, falling short of the FactSet consensus of $3.04 billion. Retail sales dipped by 1.7%, foodservice sales decreased by 2.9%, and international sales experienced a steeper decline of 6.0%. However, the company did observe an overall volume increase of 1.9%.

Revised Full-Year Outlook

As a result of the underwhelming performance in Q3, Hormel adjusted its full-year sales expectations downwards. Instead of the previously anticipated growth of 1% to 3%, the company now predicts a decline of 4% to flat compared to the previous year.

Furthermore, adjusted earnings per share for the year are expected to range from $1.61 to $1.67, which falls below the current FactSet consensus of $1.73.

Market Reaction

Despite this disappointing news, Hormel Foods Corp.’s stock had experienced a 3.7% increase over the past three months leading up to Wednesday. In comparison, the broader S&P 500 index had advanced by 8.0% over the same period.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Related Articles

Leave a Comment

+ 32 = 41