PORTLAND, Ore. (AP) -- Hormel Foods Corp., the Austin, Minn.-based maker of Spam, Dinty Moore stew and other prepared foods, is expected to report a drop in profit Tuesday when it releases its fiscal fourth-quarter results before the market opens.
WHAT TO WATCH FOR: The latest trends in sales volumes.
Hormel, like many food makers, raised its prices during the past year to offset higher costs for everything from ingredients to packaging. That put a damper on the company's sales as shoppers resisted some higher prices and cut back spending in general.
Hormel leaders were not worries about the softer sales, saying they expected this kind of pullback. The company said it would rely on a mix of new products, overseas sales and higher prices to drive its growth in the future.
However, with those slow sales and ever-fluctuating commodity prices, investors will be looking for some good news. They will want to know if that strategy paid off in the fourth quarter at all and what the food maker's take is on the coming year as economic pressures on consumers remain heavy.
WHY IT MATTERS: Hormel is a player in the industry and its results provide insight into how consumers are choosing to spend money on necessities such as food. The company's performance also highlights larger issues facing the food industry in the U.S.
WHAT'S EXPECTED: Analysts expect Hormel to earn 42 cents per share on revenue of $2.13 billion.
LAST YEAR'S QUARTER: Last year, Hormel earned $121.1 million, or 90 cents a share, for the quarter. Hormel reported revenue of $2.06 billion.
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