Hormel Foods Reports Lower-Than-Expected Revenue and Non-GAAP EPS

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Hormel Foods ($NYSE:HRL), a multinational manufacturer and marketer of food products, recently reported lower-than-expected revenue and Non-GAAP EPS for the quarter. With a strong portfolio of brands, including Skippy, SPAM, Dinty Moore, Applegate, and Muscle Milk, the company has maintained its position in the industry for over a century. Hormel Foods also offers a wide range of solutions to meet the changing preferences of today’s consumer, including natural, organic, and plant-based protein options.

The lower-than-expected revenue and Non-GAAP EPS reported by Hormel Foods have caused some concerns among investors, though the company still remains optimistic about their future performance. Hormel Foods has indicated that although these results were below their expectations, they have been able to effectively manage the challenges posed by the pandemic and continue to deliver value to shareholders.

Earnings

In its latest earning report of FY2023 Q4 ending October 31 2021, HORMEL FOODS reported total revenue of 3454.75M USD and net income of 281.74M USD, representing an increase of 5.2% and 0.7% respectively compared to the previous year. However, this can be seen as a decrease from 3 years ago, when the company reported total revenue of 3198.08M USD. These lower-than-expected results largely attribute to the company’s inability to increase sales due to the current economic climate. Despite the decline, HORMEL FOODS still managed to remain profitable and maintain a healthy balance sheet.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Hormel Foods. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Hormel Foods. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Hormel Foods. More…

Key Ratios Snapshot

Some of the financial key ratios for Hormel Foods are shown below. More…

Stock Price

Hormel Foods, an American-based producer and marketer of high quality food and meat products, reported lower-than-expected revenue and non-GAAP EPS for the first quarter of 2021. On Wednesday, HORMEL FOODS stock opened at $31.6 and closed at $30.5, down by 4.6% from last closing price of 32.0. The negative news sent shares of the company down, with many analysts predicting future losses for the firm. Hormel Foods had expected its first quarter to be strong, but the results have come in far below expectations.

The company cited weak consumer demand and supply chain disruptions due to the pandemic as the main contributing factors to the lower revenue and earnings. Despite these issues, analysts are hopeful that the company can rebound in the second quarter and meet its future financial targets. Live Quote…

Analysis

At GoodWhale, our analysis of HORMEL FOODS‘s financials shows that the company is classified as a ‘cow’, a type of company with the track record of paying out consistent and sustainable dividends. We believe that this will entice investors who are looking for steady long-term returns, rather than those seeking high-risk, high-reward opportunities. Our Star Chart also revealed that HORMEL FOODS has a high health score of 8/10 with regard to its cashflows and debt, suggesting that it is capable to ride out any crisis without the risk of bankruptcy. As for the individual metrics, HORMEL FOODS is strong in asset, dividend, with a medium rating in profitability and weak in growth. All these indicators point towards HORMEL FOODS being a safe bet for investors who are willing to stick it out for the long run. More…

Peers

In the food industry, Hormel Foods Corp competes with JM Smucker Co, Fleury Michon, and Bell Food Group Ltd. These companies all produce similar products, so the competition is fierce. Hormel Foods Corp has an advantage because it is a well-established company with a strong brand.

– JM Smucker Co ($NYSE:SJM)

The J. M. Smucker Company has a market capitalization of $15.24 billion as of March 2022 and a return on equity of 7.19%. The company manufactures and markets branded food and beverage products in North America and internationally. Its products include coffee, peanut butter, shortening and oils, ice cream toppings, fruit spreads, syrups, and frozen desserts. The company was founded in 1879 and is headquartered in Orrville, Ohio.

– Fleury Michon ($LTS:0J75)

Fleury Michon is a French company that specializes in the production of prepared foods. The company has a market cap of 79.9 million as of 2022 and a return on equity of 1.6%. Fleury Michon is a publicly traded company listed on the Euronext Paris stock exchange. The company was founded in 1887 and is headquartered in Vire, France.

– Bell Food Group Ltd ($LTS:0RFX)

BFG Ltd’s market cap is 1.43B as of 2022 and has a ROE of 7.15%. The company is a food group that manufactures and supplies food products. It offers a range of products including meat, poultry, fish, vegetables, and desserts. The company has a strong presence in the UK and Ireland, with a network of over 30 manufacturing sites and a workforce of around 23,000 people.

Summary

Hormel Foods Corporation is a global branded food company that produces high-quality, nutritious and convenient food products. Following the report, the stock price of Hormel Foods moved down. Overall, this recent data points to a weak performance from the company and investors should be cautious when deciding whether to invest in it. Furthermore, investors should also pay close attention to Hormel Foods’ upcoming performance and further data to make more informed investing decisions.