Hormel Rises on Good Earnings

This morning, Hormel Foods (HRL) reported Q1 earnings of 69 cents per share which beat estimates by five cents. Quarterly revenue rose 6.8% to $2.4 billion. That was a bit below consensus of $2.37 billion.

“We are off to an excellent start to our fiscal year with double-digit earnings growth and record sales in the first quarter,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

“Jennie-O Turkey Store increased operating profit by 56 percent, with strong value-added product sales growth, robust turkey markets, and favorable input costs,” remarked Ettinger. “Refrigerated Foods also turned in an excellent quarter by driving increased value-added sales, aided by the benefit of lower pork costs. Grocery Products was challenged by high input costs and soft sales on some brands, while International & Other delivered increases despite difficult export markets,” commented Ettinger. “Specialty Foods is focused on driving higher margins in the newly acquired CytoSport business, and going forward we believe the business is well positioned to deliver results in line with our expectations.”

The best news is that Hormel raised their full-year guidance. They now see earnings ranging between $2.50 and $2.60 per share. That’s an increase of five cents at both ends, which matches today’s earnings beats. Wall Street had been expecting $2.54 per share.

The stock has been up as much as 3% this morning.

Posted by on February 19th, 2015 at 9:54 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.