{"id":29738,"date":"2016-02-16T13:40:40","date_gmt":"2016-02-16T19:40:40","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=29738"},"modified":"2016-02-16T14:47:44","modified_gmt":"2016-02-16T20:47:44","slug":"hormel-ends-first-quarter-on-high-note","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/hormel-ends-first-quarter-on-high-note\/","title":{"rendered":"Hormel ends first quarter on high note"},"content":{"rendered":"

By Alison Martin<\/strong><\/p>\n

Hormel Foods Corp.’s shares climbed Tuesday after the food maker turned in stronger than expected fiscal first quarter results.<\/p>\n

In the quarter ended Jan. 24, the manufacturer of consumer-branded food products reported its net income as $235.1 million or 43 cents per share, up substantially from the year-earlier quarter\u2019s net income of $171.7 million or 32 cents. The reported earnings per share beat analyst expectations by six cents.
\n<\/p>\n

Revenues fell by four percent to $2.3 billion from last year\u2019s $2.4 billion<\/p>\n

Hormel Foods Corporation EPS by Quarter<\/h2>\n

[field name=”chart”]<\/p>\n

Hormel\u2019s EPS beat analyst expectations by six cents. Source: Nasdaq<\/a> (Alison Martin\/MEDILL)<\/div>\n

Chairman and CEO Jeffrey M. Ettinger said the company owed its success to \u201cincreased brand support, prudent capital investment, and portfolio-expanding acquisitions.\u201d<\/p>\n

The largest total segment operating profit \u2013 refrigerated foods \u2013 saw a 65 percent increase in operating profit, while dollar sales saw a more modest two percent increase. Hormel credited the profit upturn to higher pork operating margins.<\/p>\n

The company’s Jennie-O Turkey Store \u2013 which makes up almost a quarter of the total segment operating profit \u2013 saw sales down by 15 percent from last year.<\/p>\n

\u201cThe reductions reflect the substantial impact of the avian influenza outbreak that occurred in 2015, as previously lost flocks created significant volume shortfalls in plant operations and sales,\u201d the company press release reported.<\/p>\n

Citing its first quarter success, Hormel raised its earnings guidance range to a range of $1.50 to $1.56 per share; that\u2019s higher than the $1.47 analysts surveyed by Yahoo Finance have been expecting.<\/p>\n

Investors welcomed the news: In early-afternoon New York Stock Exchange trading, Hormel shares were up $3.70, or 7.4 percent, at $45.57. Hormel\u2019s shares have climbed 44 percent over the last six months, even as the broad stock market has fallen by more than 10 percent<\/p>\n

Analyst Brian Yarbrough at Edward D. Jones & Co. LP said Hormel\u2019s bottom line numbers looked strong. Regarding Hormel\u2019s high pork operating margins, He said Hormel buys hogs whole and sells the parts they don\u2019t use, which contributes to the operating margins. Yarbrough described Hormel as benefiting from being in the middle of the \u201cperfect storm\u201d with bacon prices strong and commodity prices staying low.<\/p>\n

\u201cWe do question how long how that can be such a tailwind,\u201d Yarbrough added.<\/p>\n

Photo at the top: Hormel\u2019s stock price has moved dramatically higher over the past year. (Alison Martin\/MEDILL)<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Alison Martin Hormel Foods Corp.’s shares climbed Tuesday after the food maker turned in stronger than expected fiscal first quarter results. In the quarter ended Jan. 24, the manufacturer of consumer-branded food products reported its net income as $235.1 million or 43 cents per share, up substantially from the year-earlier quarter\u2019s net income of […]<\/p>\n","protected":false},"author":201,"featured_media":29770,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,585],"tags":[693,1368,1369,1367],"class_list":["post-29738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2016","tag-commodity-prices","tag-corporate-earnings","tag-food-companies","tag-hormel-foods"],"yoast_head":"\nHormel ends first quarter on high note - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/hormel-ends-first-quarter-on-high-note\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hormel ends first quarter on high note - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Alison Martin Hormel Foods Corp.’s shares climbed Tuesday after the food maker turned in stronger than expected fiscal first quarter results. 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