NEW YORK – Hormel Foods Corporation (NYSE:) reported modest second-quarter earnings per share (EPS) earnings, delivering $0.38 compared to analysts’ expectations of $0.36. Still, the company’s revenues were slightly below consensus, coming in at $2.89 billion, compared to $2.97 billion expected.
The stock responded positively to the news, rising 2.6% as investors reacted to the higher earnings outlook.
The company’s performance reflects a mixed financial picture, with net sales down from $2.98 billion in the same quarter last year. Operating income also fell from $296 million to $252 million. However, adjusted operating income was $276 million, and cash flow from operations rose 13% for the quarter.
Jim Snee, chairman of the board, president and CEO, highlighted the company’s resilience, saying: “We delivered a strong first half, with consecutive quarters of better-than-expected earnings, significantly improving operating cash flows. Strength in foodservice, recovery in our international activities and stable volumes across our business.”
Snee also highlighted the company’s progress on strategic initiatives and its commitment to driving shareholder returns and long-term growth.
In light of the solid performance in the first half of the year, Hormel has raised its full-year earnings outlook. The company now expects adjusted diluted net earnings per share of $1.55 to $1.65 for fiscal 2024, a slight adjustment from the previous range of $1.51 to $1.65.
This updated guidance is above the analyst consensus midpoint of $1.58. Projected fiscal 2024 revenue is expected to be between $12.2 billion and $12.5 billion, closely matching the consensus estimate of $12.27 billion.
Hormel Foods’ updated guidance reflects confidence in the continued growth of its Foodservice and International segments, supply chain improvements, and capitalizing on its transformation and modernization initiatives.
As the company moves forward, Snee assures, “Our team remains focused on growing the bottom line, driving savings through our transformation and modernization initiative, and capturing the incremental value from our investments.”
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