Hormel Foods Earns 44 Cents per Share

This morning, Hormel Foods (HRL) reported Q1 earnings of 44 cents per share. That matched Wall Street expectations. Sales rose 1% to $2.4 billion which is just below estimates. Operating margin was 13%.

“We had a solid quarter with sales growth from Refrigerated Foods, Grocery Products and International,” said Jim Snee, chairman of the board, president and chief executive officer. “Three of our four segments generated earnings growth, which keeps us on track to deliver our full-year guidance.”

“Our new Hormel Deli Solutions division is off to a great start as the next growth engine for our company,” Snee said. “In addition, many branded value-added businesses performed well this quarter, including our business in China and both Hormel and Jennie-O foodservice divisions. We also saw impressive growth from many retail brands, including SPAM®, Dinty Moore®, Herdez®, Wholly Guacamole®, Applegate®, Natural Choice® and Hormel® pepperoni.”
“Again this quarter, our well-developed strategy of shifting our mix toward branded, value-added products in our domestic and international businesses more than offset significant declines in the commodity businesses,” Snee said. “We continue to intentionally transition our portfolio away from commodity products and the associated earnings volatility.”

Hormel also reaffirmed its full-year outlook of $1.77 to $1.91 per share.

“We are reaffirming our sales and earnings guidance for fiscal 2019,” Snee said. “We remain encouraged by the growth prospects in Refrigerated Foods, Grocery Products and International. The results we are seeing in our deli, foodservice and China businesses are exceeding expectations. While the fundamentals in the turkey industry are improving, Jennie-O Turkey Store will likely fall below our full-year expectations due to a lower retail sales outlook. While global trade uncertainty remains, we continue to execute on our well-defined strategy that focuses on building world-class brands, leading with innovation and insights, making smart investment decisions and building intentional balance into our business.”

Posted by on February 21st, 2019 at 9:09 am


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