Hormel Foods Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hormel Foods Corp (NYSE:HRL) will unveil its latest earnings on Tuesday, November 22, 2011. 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 decline of 6.7% from the company’s actual earnings for the same quarter a year ago. 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. For the year, analysts are projecting profit of $1.73 per share, a rise of 14.6% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the third quarter, it reported net income of 36 cents per share versus a mean estimate of 35 cents. Two quarters ago, it reported profit of 40 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.11 billion in revenue this quarter, a rise of 2.4% from the year ago quarter. Analysts are forecasting total revenue of $7.92 billion for the year, a rise of 9.7% from last year’s revenue of $7.22 billion.

Analyst Ratings: Analysts seem relatively indifferent about Hormel with nine of 12 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 15.4% to $98.5 million (36 cents a share) from $85.4 million (32 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.4% to $1.91 billion from $1.73 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 15%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 23.2% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 40.7% in the second quarter and 33.8% in the first quarter.

Competitors to Watch: Smithfield Foods, Inc. (NYSE:SFD), Tyson Foods, Inc. (NYSE:TSN), ZHONGPIN INC. (NASDAQ:HOGS), General Mills, Inc. (NYSE:GIS), Pilgrim’s Pride Corp. (NYSE:PPC), Seaboard Corporation (AMEX:SEB), ConAgra Foods, Inc. (NYSE:CAG), Kellogg (NYSE:K) and Kraft (NYSE:KFT).

Stock Price Performance: During September 21, 2011 to November 16, 2011, the stock price had risen $2.51 (9.3%) from $27.07 to $29.58. 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, rising 8.8% (+$2.32) 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, falling 6.8% (-$2.07) over that span. Shares are up $4.41 (+17.5%) year to date.

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

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