Hormel Foods Corporation (HRL), based in Austin, Minnesota, specializes in developing, processing, and distributing a wide range of meats, nuts, and other food products to retail, foodservice, deli, and commercial customers. With a market cap of $17 billion, Hormel’s portfolio includes well-known brands such as Planters, Skippy, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly, Hormel Black Label, Columbus, and Jennie-O, alongside more than 30 other brands. The leading food company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Dec. 4.
Ahead of the event, analysts expect HRL to report a profit of $0.43 per share on a diluted basis, up 2.4% from $0.42 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. Its EPS of $0.37 surpassed the consensus estimate by 2.8%.
For fiscal year 2024, analysts expect HRL to report EPS of $1.58, down 1.9% from $1.61 in fiscal 2023.
HRL stock has underperformed the S&P 500’s ($SPX) 22.1% gains on a YTD basis, with shares down 3.6% during this period. It also underperformed the Consumer Staples Select Sector SPDR’s (XLP) 12.6% gains over the same time frame.
On Sep. 4, Hormel Foods dropped over 7% following its release of Q3 earnings. Its net sales of $2.90 billion fell short of the $2.95 billion consensus. The company also revised its full-year net sales forecast to $11.8 billion–$12.1 billion, down from the prior estimate of $12.2 billion–$12.5 billion, contributing to the decline.
Analysts’ consensus opinion on HRL stock is neutral, with a “Hold” rating overall. Out of nine analysts covering the stock, one analyst gives it a “Strong Buy,” six advise a “Hold” rating, one has a “Moderate Sell” rating, and one gives a “Strong Sell.”
The average analyst price target for HRL is $32, indicating a 3.4% from the current levels.
On the date of publication, Kritika Sarmah 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.
