Brokerages forecast that Hormel Foods Corp (NYSE:HRL) will report $2.55 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Four analysts have issued estimates for Hormel Foods’ earnings, with the highest sales estimate coming in at $2.58 billion and the lowest estimate coming in at $2.52 billion. Hormel Foods reported sales of $2.49 billion in the same quarter last year, which would suggest a positive year over year growth rate of 2.4%. The company is scheduled to report its next earnings results on Tuesday, November 20th.
According to Zacks, analysts expect that Hormel Foods will report full-year sales of $9.57 billion for the current year, with estimates ranging from $9.54 billion to $9.60 billion. For the next year, analysts expect that the company will post sales of $9.86 billion, with estimates ranging from $9.82 billion to $9.96 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side research analysts that follow Hormel Foods.
Hormel Foods (NYSE:HRL) last posted its earnings results on Thursday, August 23rd. The company reported $0.39 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.39. The business had revenue of $2.36 billion during the quarter, compared to the consensus estimate of $2.38 billion. Hormel Foods had a return on equity of 17.44% and a net margin of 10.18%. Hormel Foods’s revenue was up 6.9% on a year-over-year basis. During the same quarter last year, the company earned $0.34 EPS.
HRL has been the subject of several analyst reports. Stephens downgraded Hormel Foods from an “overweight” rating to an “equal weight” rating in a research report on Tuesday, July 17th. They noted that the move was a valuation call. Zacks Investment Research cut Hormel Foods from a “hold” rating to a “sell” rating in a report on Tuesday, July 24th. Mizuho cut Hormel Foods from a “neutral” rating to an “underperform” rating and set a $33.00 price target for the company. in a report on Wednesday, July 25th. Buckingham Research raised their price target on Hormel Foods from $32.00 to $34.00 and gave the company a “neutral” rating in a report on Thursday, August 16th. Finally, Barclays cut Hormel Foods from an “overweight” rating to an “equal weight” rating and set a $38.00 price target for the company. in a report on Friday, August 24th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $37.27.
In other news, VP Thomas R. Day sold 11,856 shares of Hormel Foods stock in a transaction on Thursday, August 30th. The stock was sold at an average price of $38.52, for a total value of $456,693.12. Following the completion of the sale, the vice president now directly owns 4,964 shares of the company’s stock, valued at approximately $191,213.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Gary Jamison sold 8,000 shares of Hormel Foods stock in a transaction on Wednesday, September 5th. The shares were sold at an average price of $39.75, for a total value of $318,000.00. Following the completion of the sale, the vice president now directly owns 15,949 shares of the company’s stock, valued at $633,972.75. The disclosure for this sale can be found here. Insiders have sold a total of 138,632 shares of company stock valued at $5,556,981 over the last ninety days. Insiders own 1.48% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Breiter Capital Management Inc. increased its stake in shares of Hormel Foods by 52.5% in the 3rd quarter. Breiter Capital Management Inc. now owns 19,170 shares of the company’s stock valued at $755,000 after buying an additional 6,596 shares during the period. Andra AP fonden increased its stake in shares of Hormel Foods by 17.6% in the 3rd quarter. Andra AP fonden now owns 208,300 shares of the company’s stock valued at $8,207,000 after buying an additional 31,100 shares during the period. Cape Cod Five Cents Savings Bank bought a new position in shares of Hormel Foods in the 3rd quarter worth $203,000. Tandem Investment Advisors Inc. boosted its position in shares of Hormel Foods by 5.8% in the 3rd quarter. Tandem Investment Advisors Inc. now owns 260,422 shares of the company’s stock worth $10,261,000 after purchasing an additional 14,265 shares during the last quarter. Finally, Toth Financial Advisory Corp boosted its position in shares of Hormel Foods by 4.9% in the 3rd quarter. Toth Financial Advisory Corp now owns 71,816 shares of the company’s stock worth $2,830,000 after purchasing an additional 3,342 shares during the last quarter. 41.83% of the stock is owned by institutional investors.
Hormel Foods stock opened at $40.90 on Thursday. The company has a quick ratio of 0.78, a current ratio of 1.69 and a debt-to-equity ratio of 0.12. The company has a market cap of $21.00 billion, a P/E ratio of 26.05, a P/E/G ratio of 2.69 and a beta of 0.34. Hormel Foods has a one year low of $29.75 and a one year high of $42.29.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Monday, October 22nd will be issued a dividend of $0.1875 per share. The ex-dividend date of this dividend is Friday, October 19th. This represents a $0.75 dividend on an annualized basis and a yield of 1.83%. Hormel Foods’s dividend payout ratio is 47.77%.
About Hormel Foods
Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products, such as canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.
Further Reading: Retained Earnings
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