On May 28, Hormel Foods rose 8.35% in regular trading, trading at $22.78/share, with trading volume of $46.07 million. The surge was driven by the company's fiscal Q2 earnings report that significantly exceeded Wall Street expectations.
Hormel posted fiscal Q2 adjusted EPS of $0.40, well above the FactSet consensus estimate of $0.35 and IBES estimate of $0.36, representing a 14% year-over-year increase from $0.35. Net sales reached $2.97 billion, up 2.5% year-over-year and above the $2.954 billion estimate, marking six consecutive quarters of organic revenue growth. Strong demand for high-protein products including chicken and turkey, along with continued at-home cooking trends, fueled the beat.
The company reaffirmed its fiscal full-year guidance, projecting adjusted diluted EPS of $1.43-$1.51 (vs. FactSet estimate of $1.46) and adjusted operating income of $1.06-$1.12 billion. Management noted that recent divestitures would reduce reported net sales by approximately $50 million but have minimal impact on adjusted EPS, signaling confidence in core business profitability.
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