Join        Login             Stock Quote

Hormel Foods (HRL) 1Q Earnings Meet Consensus, Raises Forecast

 February 21, 2013 06:52 AM

(By Balachander) Hormel Foods Corp. (NYSE: HRL) reported quarterly earnings that matched market expectations amid sales gains at four of its five segments and the company lifted its forecast for the full year.

Net earnings were $129.72 million or $0.48 per share for the first quarter, compared with $128.39 million or $0.48 per share in the year-ago period.

 Sales grew 4 percent to $2.1 billion and volume gained 2 percent.

Wall Street analysts, on average, expected earnings of $0.48 per share on sales growth of 4.70 percent to $2.14 billion.

 Segment wise, sales at grocery products jumped 24 percent, while sales at refrigerated foods fell 2 percent. Jennie-O Turkey Store (JOTS) and specialty foods recorded sales growth of 3 percent and 7 percent, respectively. All other segment sales gained 4 percent.

[Related -Futures Down Ahead Of Service Sector Data; Compugen Ltd. (CGEN) Soars]

Jennie-O Turkey Store was confronted with higher grain costs and lower commodity turkey meat prices, the company noted.

The company said refrigerated foods segment is currently facing weaker pork operating margins and challenges in live hog production operations, though Hormel expects those factors to slowly improve.

Looking ahead for the full year 2013, the Austin, Minnesota-based company now forecast earnings per share in the range of $1.93 to $2.03 from prior view of $1.90 to $2.00, while analysts expect $1.96 for the 12 months ending October 2013.

[Related -Hormel Foods Corp. (HRL) Dividend Stock Analysis]

Hormel said it expects Jennie-O Turkey Store segment to record weaker results.

Early this month, one of the company's key competitors Tyson Foods Inc. (NYSE: TSN) reported 11 percent rise in its first-quarter profit, which also topped Street view, on lower interest expense. The company also guided its fiscal 2013 sales above estimates.

HRL shares ended Wednesday's regular trading at $36.12. The stock has been trading in the 52-week range between $27.28 and $36.72.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.