Hormel Foods Earns 45 Cents per Share

This morning Hormel Foods (HRL) reported fiscal Q4 earnings of 45 cents per share. That matched Wall Street’s estimates. That’s up 22% over last year. Quarterly revenues rose 9% to $2.63 billion which just barely beat estimates.

“We had a strong finish to fiscal 2016, achieving record earnings for the fourteenth consecutive quarter,” said Jim Snee, president and chief executive officer. “Three of our five business segments delivered sales, volume, and earnings growth, again demonstrating our balanced business model. Refrigerated Foods and Jennie-O Turkey Store both had excellent quarters with growth coming from value-added, branded products and improved market conditions. Grocery Products enjoyed a strong quarter aided by the inclusion of the JUSTIN’S® specialty nut butter business in addition to strong results from SPAM® luncheon meat and SKIPPY® peanut butter,” Snee said.

“Specialty Foods sales declined, primarily due to the divestiture of Diamond Crystal Brands in May, while sales of MUSCLE MILK® protein products were strong,” mentioned Snee. “Specialty Foods earnings decreased primarily due to increased advertising. Our International segment had a tough quarter as the team continues to work through challenging market conditions in China.”

For the year, Hormel earned $1.64 per share compared with $1.32 last year. Hormel also gave 2017 guidance of $1.68 to $1.74 per share. Wall Street had been expecting $1.68 per share.

Posted by on November 22nd, 2016 at 9:28 am


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