Stock Story -
Packaged foods company Hormel (NYSE:HRL) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
Hormel Foods (NYSE:HRL) missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $2.89 billion, down 3% year on year. Despite the revenue miss, it was a mixed quarter for the company, with EPS exceeding analysts' expectations estimates.
Is Hormel Foods a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Hormel Foods’s revenue to be flat year on year at $2.96 billion, improving from the 2.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hormel Foods has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Hormel Foods’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BellRing Brands delivered year-on-year revenue growth of 15.6%, beating analysts’ expectations by 2%, and SunOpta (TSX:SOY) reported revenues up 21.1%, topping estimates by 6.9%. BellRing Brands traded up 6.7% following the results while SunOpta was also up 13%.
Read the full analysis of BellRing Brands’s and SunOpta’s results on StockStory.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 4.4% on average over the last month. Hormel Foods is up 1.4% during the same time and is heading into earnings with an average analyst price target of $32.1 (compared to the current share price of $32.55).
