Hormel Foods Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hormel Foods (NYSE:HRL) will unveil its latest earnings on Tuesday, November 20, 2012. Hormel Foods produces and markets a variety of meat and food products throughout the United States and internationally.

Hormel Foods Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 49 cents per share, a rise of 14% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 6.9% compared to last year’s $1.86.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 7 cents in the second quarter, the company fell in line with expectations by reporting profit of 41 cents per share last quarter.

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A Look Back: In the third quarter, profit rose 12.9% to $111.2 million (41 cents a share) from $98.5 million (36 cents a share) the year earlier, meeting analyst expectations. Revenue rose 5.1% to $2.01 billion from $1.91 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 6.2% in revenue from the year-earlier quarter to $2.23 billion.

Stock Price Performance: Between August 21, 2012 and November 14, 2012, the stock price rose $1.75 (6.1%), from $28.51 to $30.26. 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% (+91 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven straight days, dropping 5.6% (-$1.67) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2% in the fourth quarter of the last fiscal year, 6.1% in the first quarter and 2.7% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.13 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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