The 10-second takeaway
For the quarter ended Jan. 27 (Q1), Hormel Foods met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share was unchanged.
Margins dropped across the board.
Hormel Foods reported revenue of $2.12 billion. The eight analysts polled by S&P Capital IQ anticipated sales of $2.13 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.48. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.48 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.3%, 20 basis points worse than the prior-year quarter. Operating margin was 8.9%, 20 basis points worse than the prior-year quarter. Net margin was 6.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $8.68 billion. The average EPS estimate is $1.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 287 members out of 301 rating the stock outperform, and 14 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Hormel Foods a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hormel Foods is hold, with an average price target of $32.13.
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