Packaged foods company Hormel (NYSE: HRL) will be reporting earnings tomorrow morning. Here’s what you need to know.
Hormel Foods beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $2.99 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Is Hormel Foods a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hormel Foods’s revenue to be flat year on year at $2.91 billion, improving from the 3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
Analysts covering the company have generally 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 five times over the last two years.
Looking at Hormel Foods’s peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. SunOpta delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 3.7%, and TreeHouse Foods reported a revenue decline of 3.6%, in line with consensus estimates. SunOpta traded up 28.3% following the results while TreeHouse Foods was down 8.3%.
Read our full analysis of SunOpta’s results here and TreeHouse Foods’s results here.
Investors in the shelf-stable food segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Hormel Foods is up 2% during the same time and is heading into earnings with an average analyst price target of $32.32 (compared to the current share price of $30.19).
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