Preview: Hormel Foods's Earnings

Hormel Foods HRL unveils its next round of earnings this Thursday, May 20. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Hormel Foods EPS is expected to be around $0.41, according to sell-side analysts. Sales will likely be near $2.42 billion. In the same quarter last year, Hormel Foods reported EPS of $0.42 on revenue of $2.42 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 2.38% decrease for the company. Sales would be down 0.08% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 0.02%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hormel Foods is scheduled to hold the call at 09:00:00 ET and can be accessed here.