Why Hormel Foods (HRL) Shares Are Falling Today - Hormel Foods (NYSE:HRL)

Hormel Foods Corp HRL reported a fourth-quarter FY22 sales decline of 5% year-on-year to $3.28 billion, missing the consensus of $3.38 billion.
Net sales for Refrigerated Foods decreased 7% Y/Y, Grocery Products rose 3%, Jennie-O Turkey Store fell 15%, and International & other sales declined 2%.
EPS of $0.51 beat the analyst consensus of $0.50.
The gross margin expanded 50 basis points Y/Y to 17.2%. The operating margin was 11.2%, and operating income for the quarter rose 3% to $367 million.
Selling, general and administrative expenses decreased 10.4% Y/Y to $206.5 million.
The company held $998 million in cash and equivalents as of October 30, 2022. Cash provided by operating activities for the quarter totaled $372 million, down 34% Y/Y.
"We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023," said Jim Snee, chairman, president and CEO.
The company's quarterly dividend of $0.2750 a share will be paid on February 15, 2023, to stockholders of record on January 17, 2023.
Outlook: HRL sees FY23 net sales of $12.6 billion - $12.9 billion versus the consensus of $13.01 billion.
The company sees FY23 EPS of $1.83 - $1.93 versus the Street view of $2.00.
Price Action: HRL shares are trading lower by 7.10% at $44.77 in premarket on the last check Wednesday.
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Hormel Foods Stock Drops On Q4 Top-Line Miss, Downbeat FY23 Forecast