Meat and food products company, Hormel Foods Corporation (HRL - Free Report) , reported mixed first-quarter fiscal 2018 results (ended January 2018).
Earnings/Revenues
Adjusted earnings in the reported quarter came in at 56 cents per share, outpacing the Zacks Consensus Estimate as well as the year-ago tally of 44 cents per share.
Net sales in the fiscal first quarter came in at $2,331.3 million, missing the Zacks Consensus Estimate of $2,403 million. However, the top line came in 2.2% higher than the year-ago tally.
Segmental Break-Up
In the reported quarter, revenues from Grocery Products inched up 0.6% to $613.9 million.
Revenues at the Jennie-O Turkey Store segment dropped 7.2% to $390.6 million.
The company’s Refrigerated Foods segment generated revenues of $1,176.5 million, up 4.8% year over year.
International & Other revenues were up 19.5% to nearly $150.3 million.
Hormel Foods noted that the U.S. Tax Cuts and Jobs Act will help boost its profitability in the upcoming quarters. This Zacks Rank #3 (Hold) company intends to finance near-term growth initiatives with the cash proceeds secured as a result of reduced corporate tax rates. Notably, the company will invest portions of its aggregate tax benefit over existing workforce and shareholders.
However, it noted that the prevalent turkey market challenges and escalating freight costs might continue to hurt the company’s results in the near future.
Based on the existing market conditions, the company reaffirmed its sales guidance for 2018 in the $9.7-$10.1 billion range. However, adjusted earnings view for fiscal 2018 has been raised to the band of $1.81-$1.95 per share, higher than the prior guidance of $1.62-$1.72 per share.
Stocks to Consider
Some better-ranked stocks in the Zacks Consumer Staples sector are listed below:
Craft Brew Alliance, Inc. carries a Zacks Rank of 2 (Buy). The company pulled off a stellar average positive earnings surprise of 250.20% over the last four quarters. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Blue Buffalo Pet Products, Inc. (BUFF - Free Report) also has a Zacks Rank of 2. It generated an average positive earnings surprise of 3.14% over the trailing four quarters.
Church & Dwight Company, Inc. (CHD - Free Report) , another Zacks Rank #2 company, recorded an average positive earnings surprise of 6.61% during the same time frame.
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Meat and food products company, Hormel Foods Corporation (HRL - Free Report) , reported mixed first-quarter fiscal 2018 results (ended January 2018).
Earnings/Revenues
Adjusted earnings in the reported quarter came in at 56 cents per share, outpacing the Zacks Consensus Estimate as well as the year-ago tally of 44 cents per share.
Net sales in the fiscal first quarter came in at $2,331.3 million, missing the Zacks Consensus Estimate of $2,403 million. However, the top line came in 2.2% higher than the year-ago tally.
Segmental Break-Up
In the reported quarter, revenues from Grocery Products inched up 0.6% to $613.9 million.
Revenues at the Jennie-O Turkey Store segment dropped 7.2% to $390.6 million.
The company’s Refrigerated Foods segment generated revenues of $1,176.5 million, up 4.8% year over year.
International & Other revenues were up 19.5% to nearly $150.3 million.
Hormel Foods noted that the U.S. Tax Cuts and Jobs Act will help boost its profitability in the upcoming quarters. This Zacks Rank #3 (Hold) company intends to finance near-term growth initiatives with the cash proceeds secured as a result of reduced corporate tax rates. Notably, the company will invest portions of its aggregate tax benefit over existing workforce and shareholders.
However, it noted that the prevalent turkey market challenges and escalating freight costs might continue to hurt the company’s results in the near future.
Based on the existing market conditions, the company reaffirmed its sales guidance for 2018 in the $9.7-$10.1 billion range. However, adjusted earnings view for fiscal 2018 has been raised to the band of $1.81-$1.95 per share, higher than the prior guidance of $1.62-$1.72 per share.
Stocks to Consider
Some better-ranked stocks in the Zacks Consumer Staples sector are listed below:
Craft Brew Alliance, Inc. carries a Zacks Rank of 2 (Buy). The company pulled off a stellar average positive earnings surprise of 250.20% over the last four quarters. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Blue Buffalo Pet Products, Inc. (BUFF - Free Report) also has a Zacks Rank of 2. It generated an average positive earnings surprise of 3.14% over the trailing four quarters.
Church & Dwight Company, Inc. (CHD - Free Report) , another Zacks Rank #2 company, recorded an average positive earnings surprise of 6.61% during the same time frame.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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