Hormel Foods Corp HRL reported second-quarter fiscal 2024 sales declined 3% year-over-year to $2.887 billion, missing the consensus of $2.967 billion.
Segment Sales YoY: Retail sales declined 6.7%, Foodservice gained 5.7%, and International sales decreased 7.3%.
Total Volume (lbs.) declined 3.6% YoY, With Retail down 5.4%, Foodservice up 2.9% and International down 7.2%.
Adjusted EPS was 38 cents, down from 40 cents YoY and above the consensus of $0.36.
Gross margin expanded 95 basis points YoY to 17.5%. The Operating margin for the quarter stood at 8.7%, compared to 9.9% last year, while adjusted operating margin was 9.6%.
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Hormel Foods’ cash provided by operating activities year-to-date totaled $640.13 million, up from $411.75 million a year ago. As of April 28, 2024, the company held $1.486 billion in cash and equivalents.
“To reflect our solid first-half performance and our expectations for continued growth from our Foodservice and International segments, ongoing improvements across our supply chain, and further benefits from our transform and modernize initiative, we are updating our full-year earnings outlook,” stated Jim Snee, chairman of the board, president and chief executive officer.
2024 Outlook: Hormel reaffirms a net sales growth outlook of $12.2 billion – $12.5 billion versus $12.27 billion consensus.
The company revised its adjusted EPS expectation to $1.55 – $1.65 from $1.51 – $1.65, versus consensus of $1.58.
Price Action: HRL shares are trading lower by 1.14% at $33.71 premarket at the last check Thursday.
Image: Photo by Willis Lam via Flickr
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