During the quarter, Hormel sold its CytoSport business to
PepsiCo Inc. (NASDAQ: PEP) for $465 million. It will be worth watching if the
company has any new plans or strategies following this divestment.
In the first quarter, Hormel reported earnings that matched expectations while revenues fell short. Net sales grew 1.2% to $2.36 billion while EPS fell 21% to $0.44. The company recorded sales increases in all its segments except Jennie-O Turkey Store, which remained flat.
For full-year 2019, Hormel expects sales to come in the range of $9.70 billion to $10.20 billion and EPS to be in the range of $1.77 to $1.91. The company expects to incur capital expenditures of around $350 million during the year.
Hormel’s shares have dropped over 5% so far this year. The majority of analysts have rated the stock as Hold.