Hormel Foods Corporation (HRL), based in Austin, Minnesota, specializes in developing, processing, and distributing a wide range of meats, nuts, and other food products to retail, foodservice, deli, and commercial customers. With a market cap of $17 billion, Hormel’s portfolio includes well-known brands such as Planters, Skippy, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly, Hormel Black Label, Columbus, and Jennie-O, alongside more than 30 other brands. The leading food company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Dec. 4.
Ahead of the event, analysts expect HRL to report a profit of $0.43 per share on a diluted basis, up 2.4% from $0.42 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. Its EPS of $0.37 surpassed the consensus estimate by 2.8%.
For fiscal year 2024, analysts expect HRL to report EPS of $1.58, down 1.9% from $1.61 in fiscal 2023.
HRL stock has underperformed the S&P 500’s ($SPX) 22.1% gains on a YTD basis, with shares down 3.6% during this period. It also underperformed the Consumer Staples Select Sector SPDR’s (XLP) 12.6% gains over the same time frame.
On Sep. 4, Hormel Foods dropped over 7% following its release of Q3 earnings. Its net sales of $2.90 billion fell short of the $2.95 billion consensus. The company also revised its full-year net sales forecast to $11.8 billion–$12.1 billion, down from the prior estimate of $12.2 billion–$12.5 billion, contributing to the decline.
Analysts’ consensus opinion on HRL stock is neutral, with a “Hold” rating overall. Out of nine analysts covering the stock, one analyst gives it a “Strong Buy,” six advise a “Hold” rating, one has a “Moderate Sell” rating, and one gives a “Strong Sell.”
The average analyst price target for HRL is $32, indicating a 3.4% from the current levels.
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