Packaged foods company Hormel (NYSE:HRL) will be reporting earnings tomorrow before the bell. Here's what investors should know.
Last quarter Hormel Foods (NYSE:HRL) reported revenues of $2.96 billion, down 2.3% year on year, missing analyst expectations by 2.9%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.
Is Hormel Foods buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Hormel Foods's revenue to decline 0.5% year on year to $3.27 billion, improvement on the 5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.
Looking at Hormel Foods's peers in the packaged food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Post delivered top-line growth of 23.2% year on year, beating analyst estimates by 0.2% and Pilgrim's Pride (NASDAQ:PPC) reported revenue decline of 2.4% year on year, exceeding estimates by 1.5%. Post traded down 3.1% on the results, Pilgrim's Pride was up 1.2%.
Read the full analysis of Post's and Pilgrim's Pride's results on StockStory.
There has been positive sentiment among investors in the packaged food segment, with the stocks up on average 5% over the last month. Hormel Foods is down 0.2% during the same time, and is heading into the earnings with analyst price target of $34.5, compared to share price of $32.
The author has no position in any of the stocks mentioned.