S&P 500 (NYSE:SPY) component Hormel Foods Corp (NYSE:HRL) will unveil its latest earnings on Wednesday, May 23, 2012. Hormel Foods produces and markets a variety of meat and food products throughout the United States and internationally.
Hormel Foods Corp Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 42 cents per share, a rise of 5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 42 cents during the last month. Analysts are projecting profit to rise by 4.6% compared to last year’s $1.82.
Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 48 cents per share versus a mean estimate of net income of 48 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.
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Wall St. Revenue Expectations: Analysts are projecting a rise of 4.6% in revenue from the year-earlier quarter to $2.05 billion.
Analyst Ratings: Analysts seem relatively indifferent about Hormel with eight of 11 analysts surveyed maintaining a hold rating.
A Look Back: In the first quarter, profit fell 13.7% to $128.4 million (48 cents a share) from $148.8 million (55 cents a share) the year earlier, meeting analyst expectations. Revenue rose 6.1% to $2.04 billion from $1.92 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15.3% in the second quarter of the last fiscal year, 10.4% in the third quarter of the last fiscal year and 2% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 3.2% in the fourth quarter of the last fiscal year and then again in the first quarter.
Stock Price Performance: From April 19, 2012 to May 17, 2012, the stock price rose $1.10 (3.9%), from $28.34 to $29.44. The stock price saw one of its best stretches over the last year between March 14, 2012 and March 29, 2012, when shares rose for 12 straight days, increasing 3.2% (+90 cents) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 6.9% (-$2.05) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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