NYSE$HRL

Hormel Foods Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hormel's Q3 2024 earnings exceeded expectations, driven by key retail brand growth, strong foodservice performance, and international segment recovery, with increasing benefits from the transform and modernize initiative.

Hormel Foods reported solid third-quarter results with better-than-expected earnings. Key retail brands grew, the Foodservice business delivered above-industry growth, and the International segment experienced significant recovery. The company is updating its net sales range expectations to $11.8 billion to $12.1 billion and narrowing its expected diluted net earnings per share range to $1.45 to $1.51.

  • Volume was 1.02 billion lbs.
  • Net sales reached $2.90 billion.
  • Operating income was $237 million, with an adjusted operating income of $267 million.
  • Diluted net earnings per share were $0.32, with adjusted diluted net earnings per share at $0.37.

Headline financials

Total Revenue

$2.9B

Previous: $2.96B-2.2%
EPS

$0.32

Previous: $0.40-20.0%
Operating Margin

8.2%

No prior period
Adj. Operating Margin

9.2%

No prior period
Effective Tax Rate

21.7%

No prior period
Operating Cash Flow

$218M

No prior period
Dividends Per Share

$0.28

No prior period
Total Volume (lbs.)

1.0B

No prior period
Capital Expenditures

-$173M

Previous: -$169M-2.4%
Free Cash Flow

$685M

Previous: $560M+22.4%
Net Income

$177M

Previous: $163M+8.6%
Operating Income

$237M

Previous: $217M+9.2%
Gross Profit

$488M

Previous: $498M-1.9%
Cash & Equivalents

$537M

Previous: $669M-19.7%
Total Assets

$13.1B

Previous: $13.4B-2.3%
Stock-Based Comp

$5.11M

Previous: $5.03M+1.5%

Revenue & EPS history

Hormel · Revenue · Quarterly

$2.9B

Q3 2024-2.2%vs Q3 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

For fiscal year 2024, the Company is updating its net sales range expectations to $11.8 billion to $12.1 billion and narrowing its expected diluted net earnings per share range to $1.45 to $1.51 and its adjusted diluted net earnings per share range to $1.57 to $1.63.

Tailwinds

  • Continued momentum across many key retail brands.
  • Growth within Foodservice and International businesses.
  • Improved service levels for the Planters snack nuts business.
  • Further advancements of our transform and modernize initiative.
  • Assuming continued benefits to net earnings from its transform and modernize initiative.

Headwinds

  • Lower-than-expected commodity markets.
  • Production disruptions at its Suffolk, Virginia, facility.
  • Declines in its contract manufacturing business.
  • Including an updated estimate of $0.06 per share impact related to production disruptions at its Suffolk, Virginia, facility.
  • Assessing the financial impact related to storm damage at its Papillion, Nebraska, facility.

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 Q3 2024

Historical avgQ3 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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