Hormel Foods Earns 36 Cents per Share

This morning, Hormel Foods (HRL) reported Q2 earnings of 36 cents per share. That was one penny better than expectations. Quarterly revenues rose 5.2% to $2.3 billion which was a little better than expectations. This was Hormel’s 13th quarter in a row of record earnings.

The Spam company had solid results across the board. Thanks to the inclusion of Applegate, Hormel’s Refrigerated Foods segment had its profits rise by 24%. Their Jenny-O Turkey biz saw its profits rise by 59%. Last year’s profits were impacted by the avian flu.

“We are pleased to announce exceptional results this quarter with three of our five segments delivering volume, sales and earnings growth. This is also our thirteenth consecutive quarter of record earnings which is a testament to our balanced business model,” said Jeffrey M. Ettinger, chairman of the board and chief executive officer. “Excellent results in Refrigerated Foods were driven by the addition of the Applegate business, foodservice sales of OLD SMOKEHOUSE® bacon, HORMEL® BACON 1™ fully cooked bacon, and HORMEL® FIRE BRAISED™ meats, and retail sales of HORMEL® NATURAL CHOICE® meats. Jennie-O Turkey Store also returned to growth, posting strong double-digit sales and earnings increases,” stated Ettinger.

“Iconic brands such as SPAM® and SKIPPY® drove increased sales in our Grocery Products and International segments. We enjoyed strong growth from MUSCLE MILK® protein products led by innovative new items such as MUSCLE MILK® protein smoothies, though Specialty Foods did not show growth this quarter due to the sale of Diamond Crystal Brands,” commented Ettinger.

But the best news is that Hormel is raising their full year guidance. The old range was $1.56 to $1.60 per share. The new range is $1.60 to $1.64 per share. Shares of HRL are up about 3.6% this morning.

Posted by on August 18th, 2016 at 10:53 am


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