On Feb. 27, Hormel Foods (NYSE:HRL) released Q1 2006 earnings for the period ending Jan. 29, 2006.
- Revenue increased more than 11%, beating expectations.
- Gross margins rose, but operating margins fell on higher selling costs.
- An increase in prepaid expenses and a decrease in accounts payable negatively affected both cash flow from operations and free cash flow.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|---|
|
Sales |
$1,380 |
$1,416 |
$1,271 |
11.4 |
|
Net Profit |
-- |
$69 |
$65 |
7.2 |
|
EPS |
$0.48 |
$0.50 |
$0.46 |
8.7 |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|
|
Gross Margin |
24.93% |
24.54% |
0.39 |
|
Op. Margin |
7.46% |
8.25% |
(0.79) |
|
Net Margin |
4.89% |
5.08% |
(0.19) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$130 |
$170 |
(23) |
|
Inventory |
$535 |
$535 |
0.1 |
|
Accounts Rec. |
$274 |
$301 |
(9) |
|
Liabilities |
Q1 2006 |
Q1 2005 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$350 |
$350 |
0 |
|
Current Liabs. |
$517 |
$583 |
(11.4) |
Inventories at work.
Cash Flow Highlights
|
Q1 2006 |
Q1 2005 |
% Change | |
|---|---|---|---|
|
Cash From Ops |
$13 |
$80 |
(83.8) |
|
Capital Expend. |
$25.43 |
$24.76 |
2.7 |
|
Free Cash Flow |
($12) |
$55 |
N/A |
Related Companies:
- Campbell Soup (NYSE:CPB)
- ConAgra Foods (NYSE:CAG)
- Kraft Foods (NYSE:KFT)
- Sara Lee (NYSE:SLE)
- Tyson Foods (NYSE:TSN)
- Unilever (NYSE:UL)
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool analyst Andy Cross did not own shares in any company mentioned above. Fool rules are here.
