NYSE$HRL

Hormel Foods Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Hormel Foods reported Q4 2020 earnings, achieving growth in the International segment and managing incremental supply chain costs related to the pandemic.

Hormel Foods Corporation reported results for the fourth quarter of fiscal 2020. Net sales were $2.4 billion, down 3%; diluted earnings per share of $0.43, down 9% from $0.47. The company highlighted strong growth in its International segment, particularly in China, and continued growth for many retail and deli brands.

  • Sales grew in all four segments, indicating strategic balance.
  • Strong demand for several domestic businesses' products exceeded available supply.
  • International segment experienced significant growth, especially in China, with balanced retail and foodservice growth.
  • Retail and deli brands like Applegate, Columbus, Jennie-O, Hormel Black Label, Herdez, and SKIPPY saw high growth levels.

Headline financials

Total Revenue

$2.42B

Previous: $2.5B-3.3%
EPS (adj)

$0.43

Previous: $0.47-8.5%
Operating Margin

11.4%

Previous: 12.8%-10.9%
Capital Expenditures

$141M

Previous: $140M+0.8%
Free Cash Flow

$109M

Previous: $210M-48.1%
Net Income

$235M

Previous: $256M-8.2%
Operating Income

$277M

Previous: $321M-13.8%
Gross Profit

$458M

Previous: $494M-7.3%
Cash & Equivalents

$1.71B

Previous: $673M+154.8%
Total Assets

$9.91B

Previous: $8.11B+22.2%
Stock-Based Comp

$3.27M

Previous: $3M+9.0%

Revenue & EPS history

Hormel · Revenue · Quarterly

$2.42B

Q4 2020-3.3%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Hormel · $157M total across 1 segment · Q4 2020

  • International
    $157M

Forward guidance

Hormel Foods is optimistic about generating sales and earnings growth in fiscal 2021, with structurally higher production capacity for key product lines. The balance across retail, deli, foodservice, and international channels gives confidence in the ability to perform well in different economic scenarios. The company is adjusting to the surge of COVID-19 cases and will continue to invest to meet the needs of team members, customers, consumers, and operators.

Tailwinds

  • Steady production improvements throughout the quarter.
  • Structurally higher production capacity for key product lines moving into next year.
  • Balance across retail, deli, foodservice, and international channels.
  • Company has adjusted to COVID-19 conditions.
  • Continued investment to meet the needs of team members, customers, consumers, and operators.

Headwinds

  • Another dramatic increase in COVID-19 cases across the nation.
  • Uncertainty in labor availability.
  • Uncertainty in customer demand.
  • Uncertainty in raw material markets.

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 Q4 2020

Historical avgQ4 2020

-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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