S&P 500 component Hormel Foods Corporation reported its results for the first quarter. Hormel Foods produces and markets a variety of meat and food products throughout the United States and internationally.
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Hormel Foods Earnings Cheat Sheet for the First Quarter
Results: Net income for Hormel Foods Corporation fell to $128.4 million (48 cents per share) vs. $148.8 million (55 cents per share) a year earlier. This is a decline of 13.7% from the year-earlier quarter.
Revenue: Rose 6.1% to $2.04 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hormel Foods Corporation fell in line with the mean analyst estimate of 48 cents per share. Analysts were expecting revenue of $2.03 billion.
Quoting Management: “Our first quarter earnings of 48 cents per share was the second best in our Company’s history, albeit down from a year ago,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer. “Sales grew six percent, with four of our five segments registering sales gains in the quarter.”
Key Stats:
Gross margin shrank 2.9 percentage points to 16.5%. The contraction appeared to be driven by increased costs, which rose 10% from the year earlier quarter while revenue rose 6.1%.
Revenue has risen for the last four quarters. Revenue increased 2% to $2.1 billion in the fourth quarter of the last fiscal year. The figure rose 10.4% in the third quarter of the last fiscal year from the year earlier and climbed 15.3% in the second quarter of the last fiscal year from the year-ago quarter.
The company’s net income has fallen in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 3.2% from the year-earlier quarter.
The company met estimates last quarter after toppling them in the two previous quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by one cent.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 43 cents per share from 42 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.78 per to share to $1.82.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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