- Hormel reduced its full-year net sales forecast to $11.8 billion to $12.1 billion from the previous $12.2 billion to $12.5 billion. The estimate was $12.13 billion.
- The company now expects adjusted EPS (Earnings Per Share) for the year to be between $1.57 and $1.63, slightly revised from $1.55 to $1.65. The average estimate was $1.60.
- For the third quarter:
- Adjusted EPS was 37 cents, down from 40 cents year-over-year, but above the estimate of 36 cents.
- EPS came in at 32 cents, up from 30 cents year-over-year.
- Net sales were $2.90 billion, a 2.2% decline year-over-year, missing the estimate of $2.95 billion.
- Segment profit was $292.2 million, a 5.6% decline year-over-year.
- Retail profit was $127.9 million, exceeding the estimate of $110.3 million.
- Foodservice profit was $142.5 million, below the estimate of $155.3 million.
- International profit was $21.8 million, missing the estimate of $23.3 million.
- Operating margin improved to 8.2%, up from 7.3% year-over-year, but below the estimate of 8.62%.
- Cash flow from operations fell to $218.0 million, below the estimates of $257.3 million.
- Analyst recommendations include 1 buy, 8 holds, and 2 sells.
Hormel Foods on Smartkarma
Top independent analysts on Smartkarma, including Baptista Research, have been closely covering Hormel Foods Corporation, a leading multinational food and meat products manufacturer. Baptista Research recently published insights on the company’s strong performance in the first half of the year, noting consecutive quarters of better-than-expected earnings, improved operating cash flows, and solid growth in the food services segment. The analyst report highlights Hormel’s progress in its international business, stable overall volumes, and strategic initiatives aimed at driving long-term growth and shareholder returns.
Additionally, Baptista Research has also analyzed Hormel Foods Corporation’s reinvestment of cash flows into branding and innovation to catalyze growth. The analyst report commends the company’s strong start in the first quarter of 2024, with better-than-expected performance across all segments and significant growth in foodservice volumes. Baptista Research is evaluating various drivers that could impact the company’s stock price in the near future and conducting an independent valuation using a Discounted Cash Flow (DCF) methodology. These analyses suggest a bullish outlook on Hormel Foods and emphasize the company’s strategic focus on sustainable growth and innovation.
A look at Hormel Foods Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores system have evaluated Hormel Foods Corporation for its long-term outlook. With a solid overall score based on Value, Dividend, Growth, Resilience, and Momentum, the company seems to be positioned well in the market. These scores indicate a positive outlook for Hormel Foods in terms of its financial health, dividend payouts, growth potential, ability to withstand market challenges, and momentum in the market.
Hormel Foods, known for manufacturing and marketing consumer-branded meat and food products globally, has received respectable scores across various key factors. While not scoring the highest in all categories, the balanced ratings suggest a stable and promising future for the company. Investors may view Hormel Foods as a reliable choice for long-term investments, considering its established presence in the industry and the positive signals from the Smartkarma Smart Scores evaluation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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