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Hormel Foods (HRL) Q3 Earnings Coming Up: Things to Consider

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Hormel Foods Corporation (HRL - Free Report) is likely to register top-and bottom-line growth when it reports third-quarter fiscal 2022 earnings on Sep 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,070 million, suggesting an increase of 7.2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 41 cents per share, indicating a 5.1% jump from the figure reported in the prior-year quarter. The producer and marketer of meats and other food products has a trailing four-quarter earnings surprise of 2.8%, on average. In the last reported quarter, the company delivered an earnings surprise of 4.4%.

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 Consider

Hormel Foods is benefiting from solid demand across its retail channel. Improvements in fill rates, solid assortment and strategic promotional activity are key drivers for its retail business. The company is also seeing continued momentum in the foodservice channel. Hormel Foods’ impressive pricing and supply chain improvements are driving growth. Apart from this, management is undertaking prudent acquisitions and other efforts to raise production. Continuation of these aspects bodes well for the quarter to be reported.

Management, in its last earnings call, highlighted that the impact of two partial plant shutdowns across China thanks to COVID-related restrictions and persistent export logistic issues are a concern for the company’s profitability in the second half of fiscal 2022. Moreover, Hormel Foods continues to battle significant input cost inflation.

What the Zacks Model Unveils

Our proven model predicts 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 carries a Zacks Rank #3 and has an Earnings ESP of +1.45%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Campbell Soup (CPB - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2022. The Zacks Consensus Estimate for CPB’s quarterly earnings was unchanged in the past 30 days at 56 cents per share, suggesting a 1.8% growth from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Campbell Soup’s quarterly revenues is pegged at $1.98 billion, suggesting growth of 5.5% from the figure reported in the prior-year quarter. CPB has delivered an earnings beat of 10.8%, on average, in the trailing four quarters.

Calavo Growers (CVGW - Free Report) currently has an Earnings ESP of +2.78% and a Zacks Rank of 3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2022. The Zacks Consensus Estimate for CVGW’s quarterly revenues is pegged at $323.8 million, which suggests a rise of 13.6% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for CVGW’s quarterly earnings moved up by a penny in the last 30 days to 36 cents per share, suggesting 311.8% growth from the year-ago quarter's reported number. CVGW has delivered an earnings beat of 24.7%, on average, in the trailing four quarters.

Brown-Forman Corporation (BF.B - Free Report) currently has an Earnings ESP of +3.16% and a Zacks Rank of 3. The company is likely to deliver top- and bottom-line growth in first-quarter fiscal 2023 quarter. The Zacks Consensus Estimate for BF.B’s fiscal first-quarter revenues is pegged at $983.9 million, indicating an increase of 8.6% from that reported in the year-ago quarter.

The consensus mark for Brown-Forman’s quarterly earnings is pegged at 48 cents per share, suggesting growth of 20% from the year-ago period’s recorded number. BF.B delivered an earnings beat of 8.1%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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