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What's in the Cards for Hormel Foods (HRL) in Q3 Earnings?
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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 2023 earnings on Aug 31. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, suggesting a rise of 2.4% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 41 cents per share, calling for a rise of 2.5% from the year-ago quarter’s reported figure. Hormel Foods has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Things to Note
Hormel Foods’ Go Forward initiative has been working well. The initiative simplifies the company’s approach to customers and operators and enables faster decision-making. In addition, Hormel Foods’ One Supply Chain initiative has centralized operations, logistics and sourcing decisions to fuel efficiencies for the company.
The modernization of its technology and e-commerce abilities, including Project Orion, the formation of the Digital Experience Group and transformational efforts at Jennie-O Turkey Store bode well. In addition, HRL has been benefiting from its prudent buyouts and capacity expansion endeavors. Its new capacity for SPAM items started operations in the second quarter of fiscal 2023. These factors imply positive signals for the quarter under review.
Hormel Foods Corporation Price, Consensus and EPS Surprise
We expect Retail, Foodservice and International segment sales growth of 3.4%, 4.6% and 2.8%, respectively, in the third quarter.
Hormel Foods continues to operate in a volatile, complex and high-cost environment. The company’s retail businesses, especially in the center store, continue to be disproportionately affected by increased inflationary pressures. We expect HRL to witness a year-over-year gross margin contraction of 80 basis points to 15.9% in the third quarter.
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, which is not the case here.
Hormel Foods carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, suggesting a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank of 3. COST is likely to witness bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share in the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, implying a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter’s levels.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, indicating a fall of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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What's in the Cards for Hormel Foods (HRL) in Q3 Earnings?
Hormel Foods Corporation (HRL - Free Report) is likely to register top-and-bottom-line growth when it reports third-quarter fiscal 2023 earnings on Aug 31. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, suggesting a rise of 2.4% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 41 cents per share, calling for a rise of 2.5% from the year-ago quarter’s reported figure. Hormel Foods has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Things to Note
Hormel Foods’ Go Forward initiative has been working well. The initiative simplifies the company’s approach to customers and operators and enables faster decision-making. In addition, Hormel Foods’ One Supply Chain initiative has centralized operations, logistics and sourcing decisions to fuel efficiencies for the company.
The modernization of its technology and e-commerce abilities, including Project Orion, the formation of the Digital Experience Group and transformational efforts at Jennie-O Turkey Store bode well. In addition, HRL has been benefiting from its prudent buyouts and capacity expansion endeavors. Its new capacity for SPAM items started operations in the second quarter of fiscal 2023. These factors imply positive signals for the quarter under review.
Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote
We expect Retail, Foodservice and International segment sales growth of 3.4%, 4.6% and 2.8%, respectively, in the third quarter.
Hormel Foods continues to operate in a volatile, complex and high-cost environment. The company’s retail businesses, especially in the center store, continue to be disproportionately affected by increased inflationary pressures. We expect HRL to witness a year-over-year gross margin contraction of 80 basis points to 15.9% in the third quarter.
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, which is not the case here.
Hormel Foods carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, suggesting a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank of 3. COST is likely to witness bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share in the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, implying a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter’s levels.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, indicating a fall of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.