Hormel Foods Projects Q4 EPS To Decline YoY; Expects Modest Volume Growth

(RTTNews) - Hormel Foods Corp. (HRL) said the company expects its fourth quarter net earnings per share to be down from last year, reflecting continued weakness in the International segment and lower Retail segment results. The company projects fourth quarter net sales to be between $3.1 billion and $3.6 billion. Hormel Foods expects modest volume growth in the fourth quarter.

The company previously received an unfavorable arbitration ruling involving an isolated commercial dispute with a third party. Hormel Foods noted that the associated one-time payment is expected to be made in the fourth quarter of fiscal 2023.

The company projects full-year net earnings per share to be $1.51 to $1.57, and adjusted net earnings per share to be $1.61 to $1.67. Full-year net sales are anticipated in between a decline of 4% to flat.

Third quarter bottom line came in at $162.68 million, or $0.30 per share compared with $218.92 million, or $0.40 per share, a year ago. Excluding items, Hormel Foods reported adjusted earnings of $217.49 million or $0.40 per share for the period. Analysts on average had expected the company to earn $0.41 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. The company's revenue for the quarter fell 2.3% to $2.96 billion from $3.03 billion last year.

Shares of Hormel Foods are down nearly 4% in pre-market trade on Thursday.

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