Hormel Foods Corporation (HRL), headquartered in Austin, Minnesota, develops, processes, and distributes various meats, nuts, and other food products to retail, foodservice, deli, and commercial customers. Valued at $17.55 billion by market cap, the company’s brands include Planters, Skippy, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly, Hormel Black Label, Columbus, Jennie-O, and more than 30 other brands. The leading food company is expected to announce its fiscal third-quarter earnings for 2024 on Thursday, Aug. 29.
Ahead of the event, analysts expect HRL to report a profit of $0.36 per share on a diluted basis, down 10% from $0.40 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2024, analysts expect HRL to report EPS of $1.60, down marginally from $1.61 in fiscal 2023.
HRL stock has underperformed the S&P 500’s ($SPX) 14.6% gains on a YTD basis, with shares down marginally during this period. Similarly, it underperformed the S&P 500 Cons Staples Sector SPDR’s (XLP) 8.6% gains over the same time frame.
On May 30, HRL shares closed down more than 9% after the company reported its Q2 results. Its net sales of $2.89 billion fell short of the consensus estimates of $2.97 billion. The company’s adjusted EPS was $0.38, beating the Wall Street estimates of $0.35. HRL reaffirmed its fiscal year 2024 net sales growth outlook of 1% to 3%. Moreover, it updated its adjusted EPS to between $1.55 and $1.65, up from the previous estimates of between $1.51 and $1.65.
Analysts’ consensus opinion on HRL stock is neutral, with a “Hold” rating overall. Out of nine analysts covering the stock, seven advise a “Hold” rating, one has a “Moderate Sell” rating, and one gives a “Strong Sell.” The average analyst price target for HRL is $31.67, indicating a marginal potential downside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
