Categories AlphaGraphs, Earnings, Retail

Hormel’s stock dips after Q4 revenue misses estimates

Hormel Foods Corporation (HRL) reported better-than-expected earnings for the fourth quarter of 2018 but revenue came short of estimates. Shares dropped around 2.7% in morning trade on Tuesday.

Net sales improved 1% to $2.52 billion from the year-ago period but missed the consensus estimate of $2.57 billion. On an organic basis, net sales fell 3%.

Hormel fourth quarter 2018 earnings infographic
Hormel Q4 2018 Earnings Infographic

Net earnings attributable to Hormel Foods Corporation improved to $261.4 million, or $0.48 per share, from $218.1 million, or $0.41 per share, in the prior-year period. Adjusted EPS rose 24% to $0.51, coming ahead of the projections of $0.46.

During the quarter, Hormel posted sales and volume increases in its Refrigerated Foods and International & Other segments. This growth was driven by strength in branded products such as Hormel pepperoni, benefits from the Columbus and Fontanini acquisitions, higher exports of SPAM luncheon meat and Skippy peanut butter and the addition of the Ceratti business.

The company saw decreases in sales and volume in the Grocery Products segment and the Jennie-O Turkey Store segment, hurt by declines in the contract manufacturing business as well as lower whole bird volume and sales.

Hormel’s stock tumbles after Q3 revenues miss expectations

For the full year of 2019, Hormel expects net sales to come in the range of $9.70 billion to $10.20 billion and EPS to come in a range of $1.77 to $1.91. The company expects strength in top brands such as Wholly Guacamole, Applegate, Jennie-O and SPAM to drive growth in 2019.

Hormel announced a 12% increase in its annual dividend, bringing the new dividend to $0.84 per share.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top