NYSE$HRL

Hormel Foods Corp · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Hormel Foods reported strong Q1 2024 results, driven by volume growth across all segments and progress in transformation and modernization initiatives.

Hormel Foods delivered strong first-quarter results with volume growth across all segments. The company reaffirms its full-year net sales and earnings expectations, anticipating continued growth in Foodservice, improvements in the International business, and impacts from pricing and innovation in Retail.

  • Volume increased by 4% to 1.1 billion lbs.
  • Net sales increased by 1% to $3.0 billion.
  • Operating income decreased by 2% to $284 million, while adjusted operating income increased by 2% to $295 million.
  • Diluted net earnings per share were comparable to last year at $0.40, with adjusted diluted net earnings per share at $0.41.

Headline financials

Total Revenue

$3B

Previous: $2.97B+0.9%
EPS

$0.40

Previous: $0.40+0.0%
Operating Margin

9.5%

Previous: 9.7%-2.1%
Total Volume (lbs.)

1.1B

No prior period
Capital Expenditures

-$47.2M

Previous: -$37.1M-27.4%
Free Cash Flow

$357M

Previous: $167M+114.2%
Net Income

$219M

Previous: $218M+0.5%
Operating Income

$284M

Previous: $289M-1.7%
Gross Profit

$509M

Previous: $496M+2.6%
Cash & Equivalents

$963M

Previous: $600M+60.6%
Total Assets

$13.5B

Previous: $13.3B+1.7%
Stock-Based Comp

$4.44M

Previous: $5.2M-14.6%

Revenue & EPS history

Hormel · Revenue · Quarterly

$3B

Q1 2024+0.9%vs Q1 2023
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

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

  • International
    $171M

Forward guidance

The Company is reaffirming its net sales growth outlook of 1% to 3% and diluted net earnings per share and adjusted diluted net earnings per share expectations of $1.43 to $1.57, and $1.51 to $1.65, respectively.

Tailwinds

  • Volume growth in key categories
  • Higher brand support and innovation
  • Impacts from incremental pricing actions
  • Current assumptions for raw material input costs
  • Modest benefit to net earnings from its transformation and modernization initiative.

Headwinds

  • Diluted net earnings per share and adjusted diluted net earnings per share are expected to decline year over year in the second quarter.
  • The full-year outlook reflects a significant year-over-year decline in whole bird turkey markets.
  • Nonrecurring costs associated with the Company's transformation and modernization initiative.
  • Deterioration of economic conditions
  • Fluctuations in commodity prices and availability of raw materials

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 2024

Historical avgQ1 2024

-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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