Hormel Raises Dividend for 54th Year in a Row

I hope everyone had a great Thanksgiving. With the holidays, I wasn’t able to mention the recent earnings report from Hormel Foods (HRL). Last Tuesday, Hormel reported fiscal Q4 earnings of 47 cents per share. That was one penny better than estimates. For the entire fiscal year, Hormel made $1.80 per share.

For next year, Hormel sees sales ranging between $9.5 billion and $10 billion, and EPS between $1.69 and $1.83. Wall Street had been expecting $1.76 per share.

Hormel also raised its annual dividend from 84 cents to 93 cents per share. This is the 54th year in a row that Hormel has increased its dividend.

“Refrigerated Foods has been a strong earnings contributor all year, and this quarter was no different. I am proud of how our value-added businesses helped offset another steep decline in commodity profits,” Snee said. “Grocery Products and Jennie-O Turkey Store posted modest earnings growth while the International results were below our expectations as the team continues to manage through challenges due to African swine fever and global trade uncertainty.”

“We grew organic volume and sales in three of our four segments this quarter,” Snee said. “Our SPAM® family of products and Herdez® authentic salsas and sauces were notable contributors within Grocery Products. Refrigerated Foods delivered strong value-added sales growth with excellent results posted by brands such as Hormel® Bacon 1TM, Hormel® Fire BraisedTM, Hormel® Black Label® and Columbus® . Jennie-O Turkey Store delivered top-line growth led by a double-digit increase in whole bird sales. We made nice gains in lean ground turkey distribution, but we have much more work to do.”

The shares got a nice bump on Tuesday and have been holding onto those gains since then. Since October 28, HRL is up 11%.

Posted by on December 2nd, 2019 at 1:53 pm


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