Minnesota, Austin-based Hormel Foods Corporation (HRL - Free Report) is a prominent meat products firm, conducting trade in the global consumer goods sector. The company sells superior-branded high-quality convenient, nutritious and flavorful edible products to its global customers.
Currently, HRL has a Zacks Rank #3 (Hold) but that could change following its third-quarter fiscal 2017 (ended July 31, 2017) earnings report which has just released.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key details from the just-released announcement below:
Earnings: HRL miss on earnings. Adjusted earnings per share came in at 34 cents per share, lower than the Zacks Consensus Estimate of 37 cents.
Revenue: Revenues of $2,207.4 million came below the Zacks Consensus Estimate of $2,237 million.
Key Stats: Hormel (HRL - Free Report) lowered its fiscal 2017 earnings guidance to the $1.54-$1.58 per share range from the prior projection of $1.65-$1.71 per share. The company noted that cost inflation for inputs such as pork trim and beef trim will continue to mar its near-term profitability. Moreover, the Jennie-O Turkey Store business segment is expected to face persistent challenges, as the industry has yet not secured the required turkey production levels.
Stock Price: At the time of writing, the stock price of HRL was down nearly 4.16% ($1.41) in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is negative. We view the company’s weaker-than-expected third-quarter fiscal 2017 results as the primary reason responsible for this negative sentiment.
As of Aug 23, 2017, HRL’s closed the trading session at $33.92 per share.
Check back later for our full write up on this HRL earnings report later!
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