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Things to Note as Hormel Foods (HRL) Lines Up for Q2 Earnings

·4 min read

Hormel Foods Corporation HRL is likely to register top-and bottom-line growth when it reports second-quarter fiscal 2022 earnings on Jun 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,001 million, suggesting an increase of 15.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 46 cents per share, indicating a 10.5% jump from the figure reported in the prior-year quarter. The producer and marketer of meats and other food products has a trailing four-quarter earnings surprise of 1.7%, on average. In the last reported quarter, the company delivered an earnings surprise of 2.3%.

Hormel Foods Corporation Price, Consensus and EPS Surprise

 

Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods Corporation Price, Consensus and EPS Surprise

Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote

 

Things To Note

Hormel Foods is benefiting from sustained demand across its retail channel. Strength in brands including Columbus, WHOLLY, Applegate, Hormel Gatherings, SPAM and Planters is a key driver. The company is gaining on improved foodservice business. Hormel Foods’ impressive pricing actions are driving growth. Also, management has been undertaking prudent acquisitions and other efforts to raise production. In this regard, strength in the Planters snack nuts business (acquired on Jun 1, 2021) is yielding. The persistence of these aspects bodes well for the quarter to be reported.

Yet, Hormel Foods has been encountering inflation and supply chain disruptions. The persistence of such high costs might have affected margins in the fiscal second quarter. In addition, rising SG&A expenses is a threat.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Hormel Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hormel Foods currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With a Favorable Combination

Here are some more companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

Designer Brands DBI currently has an Earnings ESP of +4.35% and a Zacks Rank of 2. The company is likely to register top-and bottom-line growth when it reports first-quarter fiscal 2022 earnings. The consensus mark for Designer Brands’ quarterly revenues is pegged at $806.7 million, which suggests a 14.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for quarterly earnings is pegged at 23 cents per share. The consensus estimate for DBI suggests growth of 91.7% from the year-ago quarter’s levels. Designer Brands’ has a trailing four-quarter earnings surprise of 112.8%, on average.

Kroger KR currently has an Earnings ESP of +2.95% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests an increase of 6.7% from the year-ago quarter’s reported figure.

Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $43,220 million, indicating an increase of 4.7% from the year-ago quarter’s levels. KR has a trailing four-quarter earnings surprise of 22.1%, on average.

Casey's General Stores CASY currently has an Earnings ESP of +0.38% and a Zacks Rank of 3. CASY is anticipated to register a top-line increase from the last fiscal year’s quarterly reading when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for CASY’s revenues is pegged at $3,439 million, indicating a rise of 44.6% from the figure reported in the prior fiscal year’s quarter.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.54 per share, suggesting an improvement of 37.5% from the last fiscal year’s quarterly reported number. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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