Hormel Foods Corporation Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hormel Foods Corporation (NYSE:HRL) will unveil its latest earnings on Thursday, August 25, 2011. Hormel Foods Corp. produces and markets a variety of meat and food products throughout the United States and internationally.

Hormel Foods Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 36 cents per share, a rise of 16.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 34 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 36 cents during the last month. For the year, analysts are projecting net income of $1.72 per share, a rise of 13.9% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported profit of 40 cents per share versus a mean estimate of net income of 40 cents per share. In the first quarter, the company beat estimates by 12 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.87 billion in revenue this quarter, a rise of 8.1% from the year ago quarter. Analysts are forecasting total revenue of $7.85 billion for the year, a rise of 8.7% from last year’s revenue of $7.22 billion.

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

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 40.7% while it rose 33.8% in the first quarter and 16.6% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 15.3% to $1.96 billion in second quarter. The figure rose 11.2% in the first quarter from the year earlier, climbed 23.2% in the fourth quarter of the last fiscal year from the year-ago quarter and 9.9% in the third quarter of the last fiscal year.

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), Kraft (NYSE:KFT), ConAgra Foods, Inc. (NYSE:CAG), and Kellog (NYSE:K).

Stock Price Performance: During July 22, 2011 to August 19, 2011, the stock price had dropped $2.59 (-8.6%) from $30.29 to $27.70. The stock price saw one of its best stretches over the last year between February 10, 2011 and February 22, 2011 when shares rose for eight-straight days, rising 7.5% (+$1.89) 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% (-$2.08) over that span. Shares are up $2.42 (+9.6%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.