Hormel Foods Corporation (NYSE: HRL) is scheduled to report second quarter 2019 earnings results on Thursday, May 23, before market open. Analysts expect revenue to increase 2% to $2.3 billion and earnings to improve 2.3% to $0.45 per share on a year-over-year basis.
For the second quarter, Hormel can be expected to benefit from strength in its refrigerated foods and grocery products segments. However, weakness in the turkey business is likely to weigh on the topline results for the period. The company’s bottom line results are likely to be pressured by higher costs.
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.