Why Hormel Foods Stock Is Rocketing Higher Today

Shares of Hormel Foods (NYSE: HRL) -- home to the Planters, Skippy, Jennie-O, and Spam brands -- are up 14% as of 2 p.m. ET on Thursday after the company reported excellent second-quarter earnings. The food behemoth beat analysts' expectations and reaffirmed its full-year sales and adjusted net income guidance, prompting the stock to rise. While 3% organic sales growth and a 14% rise in adjusted earnings per share (EPS) in Q2 may not be a big enough catalyst to move Hormel's share price much today, it is worth remembering the stock has been halved over the last five years.Following this steady march lower, Hormel may be showing some promising signs of life with today's results. This was the sixth consecutive quarter of organic sales growth for the company. It was also the 11th straight quarter of organic sales growth for its foodservice unit. Furthermore, despite soaring fuel and logistics expenses and an uncertain consumer environment, Hormel's margins expanded nonetheless in Q2, as evidenced by its soaring adjusted EPS. Considering that management touts Hormel's long-term growth algorithm as 2% to 3% orgain sales growth and 5% to 7% operating income growth, Q2's results were excellent.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool