Home   News

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

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

Trending Video

Dr. Max Rothschild: Future of Pig Breeding | Ep. 232

Video: Dr. Max Rothschild: Future of Pig Breeding | Ep. 232

Understanding the complexities of pig genetics is crucial for the swine industry's advancement and sustainability. In this episode, Dr. Max Rothschild, esteemed geneticist and Iowa State University's retired scientist delves into 40 years of swine genetics advancements. He covers key traits like disease resistance and feed efficiency, exploring their industry impact and future trends. Tune in to this episode now!