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Hormel (HRL) Beats Q1 Earnings Estimates, Lags Revenues

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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 first-quarter fiscal 2018 (ended January 2018) 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 beat on earnings. Adjusted earnings per share came in at 56 cents per share, higher than the Zacks Consensus Estimate of 44 cents.

Revenue: Revenues of $2,331.3 million came below the Zacks Consensus Estimate of $2,403 million

Key Stats: HRL claimed that the new Tax Cuts and Jobs Act of the United States would help in boosting up its profitability in the upcoming quarters. The company intends to finance near-term growth programs with the cash proceeds secured due to reduced corporate tax rates. Notably, the company would invest portions of its aggregate tax benefit over existing workforce and shareholders. However, HRL noted that ongoing turkey market challenges and higher freight costs would continue to hurt its results going forward.

Based on the existing market conditions, the company has reaffirmed its sales guidance for 2018 at $9.7-$10.1 billion range. However, adjusted earnings view for fiscal 2018 is increased to $1.81-$1.95 per share range, higher than the prior guidance of $1.62-$1.72 per share.

Stock Price: As of Feb 21, 2018, HRL’s closed the trading session at $32.68 per share.  

Shares prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this HRL earnings report later!

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