Hormel Foods Q2 Adj. Profit Beats Market; Lifts FY24 Earnings View, Backs Sales Forecast - Update

(RTTNews) - Hormel Foods Corp (HRL), while reporting second-quarter profit that beat Market estimates despite weakness, updated its fiscal 2024 earnings forecast and maintained sales growth view.

In pre-market activity on the NYSE, Hormel Foods shares were gaining around 1.2 percent to trade at $34.50.

For fiscal year 2024, the cmpany now expects net earnings per share of $1.45 to $1.55, compared to previously expected $1.43 to $1.57. Adjusted net earnings are now projected to be $1.55 to $1.65 per share, higher than previous estimate of $1.51 to $1.65 per share.

Analysts on average expect the company to report earnings of $1.58 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The outlook assumes continued benefits to net earnings from its transform and modernize initiative.

Further, the company continues to expect net sales growth of 1 percent to 3 percent. The Street projects annual sales of $12.27 billion, representing an year-over-year growth of 1.30 percent.

The guidance also reflects net sales and earnings pressure from a significant year-over-year decline in whole bird turkey markets, as well as the estimated impact of an unplanned production interruption at its Suffolk, Virginia, facility.

Jim Snee, chairman of the board, president and chief executive officer, said, "To reflect our solid first-half performance and our expectations for continued growth from our Foodservice and International segments, ongoing improvements across our supply chain, and further benefits from our transform and modernize initiative, we are updating our full-year earnings outlook. Our team remains focused on growing operating income, driving savings through our transform and modernize initiative, and capturing incremental value from our investments."

In its second quarter, the company's bottom line declined to $189.28 million or $0.34 per share from last year's $217.24 million or $0.40 per share. Adjusted earnings were $207.56 million or $0.38 per share for the period.

Analysts had expected the company to earn $0.36 per share.

The company's revenue for the quarter fell 3.0 percent to $2.89 billion from $2.98 billion last year, while analysts expected $2.97 billion.

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