Hormel Foods Earnings: Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Hormel Foods Corporation (NYSE:HRL) reported its results for the third quarter. Hormel Foods produces and markets a variety of meat and food products throughout the United States and internationally.

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Hormel Foods Corporation Earnings Cheat Sheet

Results: Net income for Hormel Foods Corporation rose to $111.2 million (41 cents per share) vs. $98.5 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 12.9% from the year-earlier quarter.

Revenue: Rose 5.1% to $2.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hormel Foods Corporation fell in line with the mean analyst estimate of 41 cents per share. It fell short of the average revenue estimate of $2.05 billion.

Quoting Management: “We had an excellent quarter, with earnings per share and sales up 14 percent and five percent, respectively,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “All five segments reported increased earnings, led by our Grocery Products segment. Our strong sales growth across multiple segments demonstrates that our products are connecting well with consumers.

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 2.7% to $2.01 billion in the second quarter. The figure rose 6.1% in the first quarter from the year earlier and climbed 2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 48 cents versus a mean estimate of net income of 41 cents per share.

Net income has increased 5.6% year-over-year on average across the last five quarters. The biggest gain came in the second, when income climbed 16.7% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 52 cents a share to 51 cents over the last thirty days. In the last thirty days, the average estimate for the fiscal year has moved up from $1.82 per share to $1.85.

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

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