In the fourth quarter of 2018, Hormel topped earnings estimates but fell short on revenues, hurting the stock at the time. Net sales inched up by 1% to $2.5 billion while adjusted earnings grew 24% to $0.51 per share.
Last quarter, sales and volume grew in the Refrigerated Foods as well as the International & Other segments, helped by strength in branded products along with benefits from acquisitions. Sales and volume decreased in the Grocery Products and Jennie O Turkey Store segments, due to declines in the contract manufacturing business.
For full-year 2019, Hormel had provided guidance for sales of $9.70 billion to $10.20 billion and EPS of $1.77 to $1.91. The company expects top brands like Wholly Guacamole, SPAM, Applegate and Jennie-O to drive growth in 2019.
Over the past 52 weeks, the stock has gained 25%, and has been rated Strong Buy and Hold by most analysts.