Hormel Foods Corp First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hormel Foods Corp (NYSE:HRL) will unveil its latest earnings on Thursday, February 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 analyst estimate is for profit of 48 cents per share, a decline of 12.7% 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 moved up. It has dropped from 49 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 is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 43 cents per share against a mean estimate of profit of 42 cents, and the quarter before, the company exceeded forecasts by one cent with net income of 36 cents versus a mean estimate of profit of 35 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 5.7% in revenue from the year-earlier quarter to $2.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Hormel with eight of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 3.2% to $117.3 million (43 cents a share) from $121.1 million (45 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 2% to $2.1 billion from $2.06 billion.

Key Stats:

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 15.4% in the third quarter of the last fiscal year, 40.7% in the second quarter of the last fiscal year and 33.8% in the first quarter of the last fiscal year.

Revenue has increased in each of the past four quarters. Revenue rose 10.4% in the third quarter of the last fiscal year from the year earlier, climbed 15.3% in the second quarter of the last fiscal year from the year-ago quarter and 11.2% in the first quarter of the last fiscal year.

Stock Price Performance: Between November 21, 2011 and February 17, 2012, the stock price rose 50 cents (1.7%), from $28.68 to $29.18. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 14, 2011, when shares rose for 10 straight days, increasing 8.8% (+$2.31) 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 6.8% (-$2.06) over that span.

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

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