NYSE$HRL

Hormel Foods Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Hormel Foods reported record first-quarter sales and reaffirmed full-year sales and earnings guidance, delivering sales and earnings growth despite challenging operating conditions.

Hormel Foods reported a strong first quarter with record net sales of $3.0 billion, a 24% increase from the previous year. The company reaffirmed its full-year sales and earnings guidance, demonstrating the strength of its balanced business model and exceptional execution in navigating difficult operating conditions.

  • Record net sales of $3.0 billion, up 24%; organic net sales up 13%.
  • Operating income of $320 million, up 19%.
  • Diluted earnings per share of $0.44, up 7% compared to last year.
  • Cash flow from operations of $384 million, up 87%.

Headline financials

Total Revenue

$3.04B

Previous: $2.46B+23.7%
EPS (adj)

$0.44

Previous: $0.41+7.3%
Operating Margin

10.5%

Previous: 10.9%-3.7%
Capital Expenditures

-$49.7M

Previous: -$40.4M-23.2%
Free Cash Flow

$334M

Previous: $165M+102.0%
Net Income

$240M

Previous: $222M+7.8%
Operating Income

$320M

Previous: $268M+19.3%
Gross Profit

$539M

Previous: $450M+19.7%
Cash & Equivalents

$824M

Previous: $1.75B-52.9%
Total Assets

$12.8B

Previous: $9.96B+28.8%
Stock-Based Comp

$6.33M

Previous: $7.78M-18.7%

Revenue & EPS history

Hormel · Revenue · Quarterly

$3.04B

Q1 2022+23.7%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Hormel · $171M total across 1 segment · Q4 2022

  • International
    $171M

Forward guidance

The company reaffirmed its sales and earnings guidance. Expects a favorable demand environment, pricing actions to combat inflationary pressures, and continued growth from specific products.

Tailwinds

  • Favorable demand environment expected.
  • Pricing actions to combat inflationary pressures.
  • Continued growth from products such as Columbus® charcuterie.
  • Continued growth from products such as Applegate® natural and organic meats.
  • Continued growth from products such as Planters® snack nuts.

Headwinds

  • The operating environment is expected to remain volatile.
  • Supply chain will continue to show improvement as labor pressures ease.
  • New capacity comes online to support key growth platforms, such as dry sausage.
  • New capacity comes online to support key growth platforms, such as pizza toppings.
  • New capacity comes online to support key growth platforms, such as bacon.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.9%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+8.2%

Q1 2024

Best reaction

-13.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026+0.0%-2.8%-8.9%
Q4 2025+3.8%+3.3%+1.3%
Q3 2025-13.1%-13.7%-14.8%
Q2 2025+1.2%+2.7%+1.4%
Q1 2025-1.2%+0.6%+5.7%
Q4 2024+3.3%+4.3%-1.4%
Q3 2024-3.1%-2.2%-5.4%
Q2 2024-9.1%-9.9%-10.6%
Q1 2024+8.2%+10.3%+13.2%
Q4 2023-4.3%-0.7%+0.5%
Q3 2023-3.2%-5.1%-4.1%
Q2 2023+6.6%+5.7%+5.2%
Q1 2023-7.3%-8.8%-9.0%
Q4 2022-1.2%-2.1%-5.5%
Q3 2022-7.7%-7.4%-9.6%
Q2 2022-6.5%-5.5%-1.2%
Q1 2022+6.0%+8.6%+8.2%
Q4 2021+7.5%+11.9%+16.5%
Q3 2021-6.3%-7.6%-10.5%
Q2 2021+7.5%+6.6%+3.2%
Q1 2021+0.3%+0.8%+2.2%
Q4 2020-6.3%-5.7%-5.7%
Q3 2020-3.2%-3.8%-8.3%
Q2 2020-2.2%-4.7%+1.2%
Q1 2020-7.6%-7.7%-6.9%
Q4 2019+5.0%+4.1%+5.9%
Q3 2019+2.5%+3.5%+4.8%
Q2 2019+2.0%-1.6%+4.9%
Q1 2019-0.5%-2.2%+1.1%
Q4 2018+0.2%+0.7%-5.7%
Q3 2018-1.4%-1.6%+3.9%
Q2 2018+0.1%+1.9%+1.3%
Q1 2018-0.1%+0.2%-0.4%
Q4 2017+2.6%+3.0%+9.0%
Q3 2017-7.6%-8.7%-7.8%
Q2 2017-6.4%-6.0%-1.3%
Q1 2017-7.1%-5.5%-7.5%
Q4 2016+0.8%+2.6%+0.6%
Q3 2016+6.4%+7.5%+0.1%
Q2 2016-8.8%
Q1 2016+7.2%
Q4 2015+6.2%
Q3 2015+5.1%
Q2 2015+3.1%
Q1 2015+3.2%
Q4 2014-2.6%
Q3 2014+4.4%
Q2 2014-4.6%
Q1 2014+3.1%
Q4 2013+6.1%
Q3 2013+1.4%
Q2 2013-2.0%
Q1 2013+2.8%
Q4 2012-2.7%
Q3 2012+1.3%
Q2 2012+1.7%
Q1 2012-0.9%
Q2 2011+1.2%
Q4 2011+1.2%
Q4 2008+1.2%
Q3 2011-2.4%
Q1 2011-0.1%
Q1 2010-0.1%
Q2 2010-0.3%
Q4 2010-0.3%
Q3 2010-0.4%
Q3 2009-0.4%
Q4 2009-0.4%

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