Categories AlphaGraphs, Consumer, Earnings
Hormel Foods (HRL) Q2 profit dips 19% but meets expectations
Hormel Foods Corporation (NYSE: HRL) reported a 19% dip in earnings for the second quarter of 2020 due to higher costs and expenses. The top-line increased by 3.3% year-over-year backed by double-digit growth in sales from Jennie-O Turkey Store and single-digit growth in sales from Grocery Products and International & Other.
Even though the COVID-19 pandemic has caused a dramatic shift in consumer behavior, operational disruptions, and extreme volatility in raw material markets, the company remains financially strong and well-positioned to weather the pandemic. The company withdraws its guidance due to uncertainty regarding the impact of COVID-19.
In Q2, the company absorbed about $20 million in incremental supply chain costs primarily related to lower production volumes, employee bonuses, and enhanced safety measures in its production facilities. The company expects to absorb another $60-80 million in the second half of the year weighted primarily to Q3. The majority of the increased costs are expected to be temporary.
Past Performance
Most Popular
What awaits Herman Miller (MLHR) beyond the home-office rush?
Herman Miller Inc. (NASDAQ: MLHR) is one of the few Wall Street firms that managed to take advantage of the opportunities created by the pandemic, after being hit by the
Cognizant’s (CTSH) buying spree in 2020
Cognizant Technology Solutions (NASDAQ: CTSH) has been on a buying spree in 2020. The portfolio of the acquisitions that Cognizant made this year is expected to help the company in
Major earnings conferences to watch for the week of Sept. 21
After registering a slow recovery in the first half of the week, the markets pared these gains on Thursday and Friday. The weakness witnessed in the latter half of the