Hormel Foods Corporation ($HRL) Earnings (Q1 FY22)

 Hormel Foods Corporation ($HRL) Earnings and Opinions:


Hormel Foods Corporation is a food distributor in both the United States and Internationally. One of the most common products they deliver is Jennie-O Turkey, as well as Planters (Peanuts). They also deliver the world famous SPAM. Hormel is currently headquartered in Austin, Minnesota, but has distributions centers all over the world. Let's dive into the earnings and get my take on where the company stands. 


Hormel Foods Corporation EPS and Revenue:

  • EPS of $0.44 compared to estimates of $0.43
  • Revenue of $3.04B compared to estimates of $2.88B
  • EPS were up 7.32% (YOY) and Revenues were up 23.70% (YOY)
Hormel Foods Corporation Segment Data:
  • Net Sales of Grocery Products up 48.1% (YOY)
  • Net Sales of Refrigerated Foods up 19.1% (YOY)
  • Net Sales of Jennie-O Turkey Store up 15.3% (YOY)
  • Net Sales of International & Other down 3.5% (YOY)
Hormel Foods Corporation Outlook (FY22)
  • Net Sales Guidance $11.7B-$12.5B
  • Diluted EPS Guidance $1.87-$2.03

Opinion:
I currently have a position in Hormel, so this earnings report was very important for me. Hormel has been a solid holding for me because it pays out a dividend, but it has shown nothing but growth since I became a shareholder (September 2021). This earnings report really stuck out though. They seem to have kicked off this fiscal year on a good note, they beat both Revenue and EPS estimates. Net Sales in 3/4 of the segments looked way stronger compared to last year, but Net Sales of International and Others seem to be lacking a little bit. I think this could have been disrupted by supply chain issues, however in America, the supply chain distribution wasn't as apparent. The outlook shows that they are combating inflationary pressures and that they are looking for key growth in dry sausage, pizza toppings, and bacon. Personally, I am very satisfied with these reports, they definitely over-exceeded my expectations I had for them this quarter. I think they have a good chance, if they keep this pace, to beat the guidance given for EPS and Revenue for this fiscal year. The stock price is near all-time highs right now, but that shouldn't faze you. If you are a long-term investor looking for a company to give you some income, as well as a solid growth track overtime, this might be a great addition to your portfolio.



*Information attained from Hormel, Yahoo Finance, and Nasdaq
*Estimates attained from Zacks

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