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Hormel Foods (HRL) Queued for Q4 Earnings: Factors to Watch

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Hormel Foods Corporation (HRL - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers on Dec 9. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,216 million, which suggests an increase of 32.9% from the figure reported in the prior-year quarter. The consensus mark for fiscal 2021 revenues is pegged at $11,148 million, suggesting an improvement of 16% from the figure reported a year ago.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 50 cents per share, indicating growth of 16.3% from the figure reported in the prior-year quarter. Hormel Foods’ fiscal 2021 earnings per share (EPS) is pegged at $1.71, which suggests 3% rise from the figure reported in the year-ago quarter. The producer and marketer of several meat and other food products has a trailing four-quarter earnings surprise of 0.7%, on average. In the last reported quarter, the company delivered an earnings surprise of 2.6%.

Hormel Foods Corporation Price and EPS Surprise

Hormel Foods Corporation Price and EPS Surprise

Hormel Foods Corporation price-eps-surprise | Hormel Foods Corporation Quote

Things To Note

Hormel Foods is benefiting from robust demand in its retail and deli channel. The company’s International & Other segment has also been performing well. Hormel Foods is witnessing recovery in the foodservice business. Management remains focused on making continued investments in the e-commerce channel, which is significant for the company.

In its last earnings release, management highlighted that it expects to report record sales during the fourth quarter of fiscal 2021, with improving margins stemming from incremental pricing actions. Management alsopredictedits fiscal 2021 net sales to reflect gains from the acquisition of the Planters snack nuts business. Management projectedfiscal 2021 net sales in the range of $11-$11.2 billion.

Hormel Foods is grappling with the impact of inflationary pressures in most areas like raw materials, packaging, freight, labor and many other inputs. Thanks to the impact of inflationary pressures on the business, management provided soft EPS view for fiscal 2021 during the fiscal third-quarter release. EPS is envisioned to be $1.65-$1.69 for fiscal 2021.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hormel Foods this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hormel Foods currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank #3. The company is expected to register bottom-line decline when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the past 30 days to 80 cents per share. The projection suggests a 21.6% slump from the year-ago quarter’s reported figure.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup’s top line is expected to fall year over year. The consensus mark for revenues is pegged at $2,290 million, indicating a decline of 2.1% from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 4.2%, on average.

Lululemon Athletica Inc. (LULU - Free Report) currently has an Earnings ESP of +1.44% and a Zacks Rank of 2. LULU is expected to register top- and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 28.1% from the prior-year quarter’s reported number.

The Zacks Consensus Estimate for lululemon’s quarterly earnings has moved up a penny up in the past 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago quarter’s reported number. LULU delivered an earnings beat of 25.2%, on average, in the trailing four quarters.

The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +1.06% and a Zacks Rank of 3. It is likely to register a bottom-line decline when it reports third-quarter fiscal 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past seven days to 67 cents per share, the same suggests a decline of 5.6% from the year-ago period’s tally.

Kroger’s top line is likely to register year-over-year growth in the quarter. The Zacks Consensus Estimate for its quarterly revenues is pegged at $31,148 million, suggesting an increase of 4.8% from the figure reported in the prior-year quarter. KR delivered an earnings surprise of 18%, on average, in the trailing four quarters.