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Hormel Foods (HRL) to Post Q2 Earnings: What's in the Cards?
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Premium meat products company, Hormel Foods Corporation (HRL - Free Report) is slated to report second-quarter fiscal 2017 (ended Apr 2017) results on May 25, before the market opens.
Over the last one month, Hormel Foods’ shares yielded a return of 0.77%, as against the loss of 5% incurred by the Zacks classified Food-Meat Products industry.
The company has delivered a positive average earnings surprise of 1.16%, in the last four quarters.
Let’s see how things are shaping up prior to this announcement.
Existing Scenario
The company anticipates to report higher revenues in the quarters ahead, on the back of its diversified product portfolio, increased fresh pork supply export, elevated grain prices and strategic marketing programs.
In addition, the acquisition of Justin's LCC (May 2016) is expected to bolster the company’s Grocery Products' sales, moving ahead.
However, on the other side, the company believes that the prevailing oversupply situation in the turkey market would weigh over turkey prices. This, in turn, would hurt its Jennie-O Turkey Store business in the upcoming quarters of fiscal 2017. Furthermore, escalating operating expenses of the segment might adversely affect Hormel Foods’ aggregate bottom-line performance in the quarters ahead. Moreover, other headwinds such as stiff industry rivalry or a stronger U.S. dollar might significantly hamper near-term overseas revenues and profitability.
Over the last 60 days, the Zacks Consensus Estimate for this stock remained unchanged for fiscal 2017.
Earnings Whispers
Our proven model does not conclusively show that Hormel Foods will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
Zacks ESP: Hormel Foods currently has an Earnings ESP of 0.00%. This is because the Zacks Consensus Estimate of 40 cents is in line with the Most Accurate estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hormel Foods currently carries a favorable Zacks Rank #3. However, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
AdvancePierre Foods Holdings, Inc. , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Procter & Gamble Company (PG - Free Report) , with an Earnings ESP of +1.28% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Hormel Foods (HRL) to Post Q2 Earnings: What's in the Cards?
Premium meat products company, Hormel Foods Corporation (HRL - Free Report) is slated to report second-quarter fiscal 2017 (ended Apr 2017) results on May 25, before the market opens.
Over the last one month, Hormel Foods’ shares yielded a return of 0.77%, as against the loss of 5% incurred by the Zacks classified Food-Meat Products industry.
The company has delivered a positive average earnings surprise of 1.16%, in the last four quarters.
Let’s see how things are shaping up prior to this announcement.
Existing Scenario
The company anticipates to report higher revenues in the quarters ahead, on the back of its diversified product portfolio, increased fresh pork supply export, elevated grain prices and strategic marketing programs.
In addition, the acquisition of Justin's LCC (May 2016) is expected to bolster the company’s Grocery Products' sales, moving ahead.
However, on the other side, the company believes that the prevailing oversupply situation in the turkey market would weigh over turkey prices. This, in turn, would hurt its Jennie-O Turkey Store business in the upcoming quarters of fiscal 2017. Furthermore, escalating operating expenses of the segment might adversely affect Hormel Foods’ aggregate bottom-line performance in the quarters ahead. Moreover, other headwinds such as stiff industry rivalry or a stronger U.S. dollar might significantly hamper near-term overseas revenues and profitability.
Over the last 60 days, the Zacks Consensus Estimate for this stock remained unchanged for fiscal 2017.
Earnings Whispers
Our proven model does not conclusively show that Hormel Foods will beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
Zacks ESP: Hormel Foods currently has an Earnings ESP of 0.00%. This is because the Zacks Consensus Estimate of 40 cents is in line with the Most Accurate estimate.
Hormel Foods Corporation Price and EPS Surprise
Hormel Foods Corporation Price and EPS Surprise | Hormel Foods Corporation Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hormel Foods currently carries a favorable Zacks Rank #3. However, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
MGP Ingredients, Inc. (MGPI - Free Report) , with an Earnings ESP of +2.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvancePierre Foods Holdings, Inc. , with an Earnings ESP of +3.23% and a Zacks Rank #3.
Procter & Gamble Company (PG - Free Report) , with an Earnings ESP of +1.28% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>