NYSE$HRL

Hormel Foods Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hormel Foods reported better-than-expected first-half earnings and advanced transform and modernize initiative.

Hormel Foods Corporation reported second quarter fiscal 2024 results, with net sales of $2.89 billion and diluted net earnings per share of $0.34. The company is updating its full-year earnings outlook, reaffirming its net sales growth outlook of 1% to 3% and updating its expectations for diluted net earnings per share to $1.45 to $1.55.

  • Delivered a strong first half with better-than-expected earnings.
  • Made further progress on strategic initiatives.
  • Updating full-year earnings outlook due to solid first-half performance.
  • Team remains focused on growing operating income and driving savings.

Headline financials

Total Revenue

$2.89B

Previous: $2.98B-3.0%
EPS

$0.34

Previous: $0.40-15.0%
Operating Margin

8.7%

Previous: 9.9%-12.1%
Adj. Operating Margin

9.6%

No prior period
Effective Tax Rate

22.5%

No prior period
Operating Cash Flow

$236M

No prior period
Dividends Per Share

$0.28

No prior period
Total Volume (lbs.)

1.1B

No prior period
Capital Expenditures

-$107M

Previous: -$90.6M-18.3%
Free Cash Flow

$533M

Previous: $321M+65.9%
Net Income

$189M

Previous: $217M-12.9%
Operating Income

$252M

Previous: $296M-14.7%
Gross Profit

$504M

Previous: $491M+2.5%
Cash & Equivalents

$1.49B

Previous: $580M+156.1%
Total Assets

$14.1B

Previous: $13.3B+6.2%
Stock-Based Comp

$10.6M

Previous: $10.7M-1.4%

Revenue & EPS history

Hormel · Revenue · Quarterly

$2.89B

Q2 2024-3%vs Q2 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

Hormel Foods is reaffirming its net sales growth outlook of 1% to 3%. Updating its expectations for diluted net earnings per share to $1.45 to $1.55 and its expectations for adjusted diluted net earnings per share to $1.55 to $1.65.

Tailwinds

  • Reaffirming net sales growth outlook of 1% to 3%.
  • Updating diluted net earnings per share expectations to $1.45 to $1.55.
  • Updating adjusted diluted net earnings per share expectations to $1.55 to $1.65.
  • Assuming continued benefits to net earnings from its transform and modernize initiative.
  • The Company expects full-year advertising expense to increase compared to the prior year.

Headwinds

  • Including net sales and earnings pressure from a significant year-over-year decline in whole bird turkey markets.
  • Including the estimated impact of an unplanned production interruption at its Suffolk, Virginia, facility.
  • Effective tax rate of 22.0 - 23.0%.
  • The Company's target for capital expenditures in fiscal 2024 is $280 million.
  • The full-year expense for fiscal 2024 is expected to be approximately $250 million.

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 Q2 2024

Historical avgQ2 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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