Hormel Foods Corporation (NYSE: HRL)
Hormel Foods Corp. on Thursday announced first-quarter 2019 earnings that matched Wall Street expectations though revenues fell shy. Shares of the Austin-based food company were inactive in pre-market trade.
The owner of Wholly Guacamole, Skippy and Spam also reaffirmed its earnings and revenue guidance for fiscal 2019, buoyed by growth prospects in its Grocery Products, International and Refrigerated Foods segments.
HRL Earnings & Outlook
First-quarter net income came to $241.43 million, or $0.44 per share compared with $303.11 million, or $0.56 per share, in the first quarter of the previous year. Sales for the quarter totaled $2.36 billion, up 1.3% from $2.33 billion in the earlier-year period.
On average, analysts polled by Refinitiv were expecting the company to report adjusted earnings of $0.44 per share on sales of $2.39 billion. Sales from its Jennie-O Turkey Store business were $321.2 million, down 0.5% year-over-year but above market expectations of $315.1 million.
Grocery products brought in revenue of $606.8 million, missing forecasts of $615.9 million but up 0.5% from last year’s first quarter. Refrigerated products revenue rose 1.9% to account for $1.28 billion of the company’s total revenue, but fell short of $1.29 billion expectations.
Hormel Foods expects full-year earnings to be in the region of $1.77 to $1.91 per share, and revenues of between $9.70 billion to $10.20 billion. Analysts model fiscal 2019 earnings of $1.83 per share on revenues of $9.82 billion.
Hormel Foods CEO Comments
“We had a solid quarter with sales growth from Refrigerated Foods, Grocery Products and International,” said Jim Snee, chairman of the board, president and chief executive officer. “Three of our four segments generated earnings growth, which keeps us on track to deliver our full-year guidance.”
“Our new Hormel Deli Solutions division is off to a great start as the next growth engine for our company,” Snee said. “In addition, many branded value-added businesses performed well this quarter, including our business in China and both Hormel and Jennie-O foodservice divisions. We also saw impressive growth from many retail brands.”
Hormel Foods Corporation Profile
Hormel Foods Corp. engages in the production of meat and food products. It operates business through the following segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International and Other. The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold in the retail market.
The Refrigerated Foods segment involves in the processing, marketing, and sale of branded and unbranded pork, beef, and poultry products for retail, foodservice, deli, and commercial customers. The Jennie-O Turkey Store segment include processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and fresh product customers.
The International and Other segment comprises Hormel Foods International which manufactures, markets, and sells Company products internationally. The company was founded by George A. Hormel in 1891 and is headquartered in Austin, MN. – CNN Money
