Hormel Foods Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

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

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Hormel Foods Earnings Cheat Sheet for the Third Quarter

Results: Net income for the meat products company rose to $98.5 million (36 cents per share) vs. $85.4 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 15.4% from the year earlier quarter.

Revenue: Rose 10.4% to $1.91 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HRL fell in line with the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $1.87 billion.

Quoting Management: “We are pleased to report improved earnings per share and sales for the quarter, which were up 13 percent and 10 percent, respectively,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Earnings growth was led by our Grocery Products and Jennie-O Turkey Store segments, both of which had a strong quarter. Our international business in our All Other segment was also a strong contributor to our earnings results.”

Key Stats:

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

Gross margin shrank 0.9 percentage point to 15.6%. The contraction appeared to be driven by increased costs, which rose 11.6% from the year earlier quarter while revenue rose 10.4%.

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

The company has now fallen in line with estimates for the past two quarters. It reported net income of 40 cents in the second 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).

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(Source: Xignite Financials)