Hormel Foods Posts Upbeat Q4 Profit, But Sales Miss Views

Hormel Foods Corp HRL reported better-than-expected earnings for its fiscal fourth quarter. The Austin, Minnesota-based company reported quarterly net earnings of $187.2 million, or $0.69 per share, compared to $171.3 million, or $0.63 per share, in the year-ago quarter. Excluding one-time items, the company's adjusted earnings came in at $0.74 per share. Its revenue slipped 5.6 percent year-over-year to $2.4 billion. However, analysts were expecting earnings of $0.69 per share on revenue of $2.54 billion. The average estimate among 8 Estimize users was for earnings of $0.70 per share and revenue of $2.53 billion. Grocery Products operating profit rose 57 percent for the quarter, while Refrigerated Foods operating profit climbed 27 percent. Jennie-O Turkey Store operating profit slipped 23 percent for the quarter, while Specialty Foods operating profit jumped 63 percent. International & Other operating profit gained 3 percent for the latest quarter. "I am proud of the excellent fourth quarter delivered by our team, achieving record earnings for the tenth straight quarter. We reported record bottom line results for the full year, with fiscal 2015 adjusted net earnings up 19 percent over last year and all five segments registering earnings growth," said Jeffrey M. Ettinger, chairman of the board and chief executive officer. "I am pleased with our momentum heading into fiscal 2016, and we should enjoy renewed revenue growth as the year proceeds," Ettinger added. "We expect lower input costs to provide a tailwind for our Grocery Products and Refrigerated Foods value-added businesses next year, offsetting modestly lower pork operating margins." For the full year, Hormel projects earnings of $2.85 to $2.95 per share, versus analysts' estimates of $2.83 per share. Hormel shares gained 1.60 percent to close at $69.26 yesterday.