Hormel stock sinks toward 15-month low after earnings miss, amid inflation pressures, supply chain issues and volume weakness

Mar 06, 2023

Shares of Hormel Foods Corp. HRL, -4.56% took 5.1% hit toward a more than 15-month low in premarket trading Thursday, after the branded foods company, with brands including Planters, Skippy, Spam and Natural Choice, reported fiscal first-quarter results that missed expectations, citing inflationary pressures, supply chain inefficiencies and weak sales volumes.

Net income for the quarter to Jan. 29 fell to $217.7 million, or 40 cents a share, from $239.6 million, or 44 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of 45 cents. Sales fell 2.4% to $2.97 billion, below the FactSet consensus of $3.08 billion, with both retail and foodservice sales down 2% but international sales down 8%. Volume declined 13% for retail, dropped 6% for foodservice and sank 14% for international.

Cost of sales fell less than sales, down 1.2% to $2.48 billion, as gross margin contracted to 16.7% from 17.7%. For the full year, the company expects EPS of $1.70 to $1.82, below the FactSet consensus of $1.88, and expects sales growth of 1% to 3%, while the current FactSet consensus of $12.76 billion implies a 2.4% rise. The stock, on track to open at the lowest price seen since Nov. 30, 2021, has lost 8.0% over the past three months through Wednesday, while the S&P 500 SPX, +0.76% has declined 3.0%.

Source : Swine Web

Video: Early Fall Colors | Scenic Ontario Road Trip!

All adventures must come to an end, but not without one more journey! Join The Wandering Shepherds as we say farewell to our cozy Calabogie cottage and take the scenic road trip home to Ewetopia Farms. Our first stop was a breathtaking hydroelectric generating station, framed by cliffs, rushing water, and brilliant fall leaves that seemed to have changed overnight. From there, we meandered along winding backroads through lakes and hills, soaking in the spectacular autumn scenery. This year, the colors seemed to arrive earlier than usual—perhaps due to the summer’s drought? Whatever the reason, it was an unforgettable display of Ontario’s fall beauty. Finally, our holiday drew to a close as we pulled back into Ewetopia Farms, ready to return to the sheep and our daily vlogs. But this trip reminded us how important it is to pause, explore, and appreciate the simple beauty around us.