Hormel Misses and Lowers Guidance

Also this morning, Hormel Foods (HRL) posted fiscal Q1 earnings of 44 cents per share, one penny shy of estimates. The Spam stock also lowered its full-year guidance to $1.65 to $1.71 per share. That’s a decrease of three cents to both ends of the range. Hormel cited “challenging market conditions in the turkey industry.”

For Q1, Jennie-O Turkey sales rose 13% but segment profits fell 25%. Overall sales fell 0.5% to $2.28 billion. Despite the earnings miss, this was Hormel’s 15th record quarter in a row.

“We are tempering our full year outlook for the Jennie-O Turkey Store segment given the shortfalls in the first quarter and the expected continuation of pricing pressure due to low commodity turkey prices. Improvements in our other segments are expected to offset some of the earnings headwinds from Jennie-O Turkey Store,” Snee said.

Posted by on February 23rd, 2017 at 8:36 am


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