Hormel Earns 40 Cents per Share

This morning, Hormel Foods (HRL) reported fiscal Q2 earnings of 40 cents per share, one penny more than estimates. Revenues rose 0.9% to $2.3 billion.

Here are some details:

Grocery Products operating profit up 21 percent; volume down 1 percent; dollar sales up 1 percent.

Refrigerated Foods operating profit up 13 percent; volume up 3 percent; dollar sales up 7 percent.

Jennie-O Turkey Store operating profit up 20 percent; volume down 5 percent; dollar sales down 4 percent.

Specialty Foods operating profit up 74 percent; volume down 2 percent; dollar sales down 5 percent.

International & Other operating profit down 33 percent; volume down 13 percent; dollar sales down 17 percent.

For the second time, Hormel raised its full-year guidance. The company now sees 2016 EPS coming in between $1.56 and $1.60.

“We are raising our fiscal 2016 earnings guidance range from $1.50 to $1.56 per share to $1.56 to $1.60 per share based on strong second quarter results and continued expectations for growth in the back half of the year,” stated James P. Snee, president and chief operating officer.

“We look for Refrigerated Foods and Grocery Products to continue driving earnings increases through growth in value-added products combined with favorable input costs,” stated Snee. “Jennie-O Turkey Store is well-positioned to drive sales and earnings growth as turkey production has returned to normalized levels.”

“Specialty Foods will continue to deliver increased sales of MUSCLE MILK® protein products but may not show year-over-year increases in segment sales and earnings as a result of the divestiture of Diamond Crystal Brands,” added Snee. “We expect International to return to growth in the back half of fiscal 2016 led by export sales of our SPAM® family of products and SKIPPY® peanut butter.”

“Today we announced that we have entered into a definitive agreement to acquire Justin’s, LLC, owner of the JUSTIN’S® brand and a pioneer in nut butter-based snacking,” stated Snee. “We are excited to work together with the Justin’s team to bring these great natural and organic products to even more consumers, leveraging key Hormel Foods resources to drive continued innovation and growth to this on-trend category.”

Posted by on May 18th, 2016 at 9:21 am


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