NYSE$HRL

Hormel Foods Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Hormel Foods reported record fourth-quarter sales and earnings, driven by double-digit sales growth from every segment.

Hormel Foods reported record sales of $3.5 billion and record diluted earnings per share of $0.51 for the fourth quarter of fiscal 2021. All segments contributed to the growth, with particularly strong performance in the foodservice channel. The company also issued earnings guidance with sales and earnings growth expected from all four segments.

  • Volume of 1.4 billion lbs., up 14%; organic volume up 8%
  • Record net sales of $3.5 billion, up 43%; organic net sales up 32%
  • Operating income of $358 million, up 29%
  • Record diluted earnings per share of $0.51, up 19% from $0.43

Headline financials

Total Revenue

$3.46B

Previous: $2.42B+42.8%
EPS (adj)

$0.51

Previous: $0.43+18.6%
Operating Margin

10.4%

Previous: 11.4%-8.8%
Capital Expenditures

$93.1M

Previous: $141M-33.8%
Free Cash Flow

$471M

Previous: $109M+331.1%
Net Income

$282M

Previous: $235M+20.1%
Operating Income

$358M

Previous: $277M+29.3%
Gross Profit

$578M

Previous: $458M+26.3%
Cash & Equivalents

$614M

Previous: $1.71B-64.2%
Total Assets

$12.7B

Previous: $9.91B+28.1%
Stock-Based Comp

$4.43M

Previous: $3.27M+35.5%

Revenue & EPS history

Hormel · Revenue · Quarterly

$3.46B

Q4 2021+42.8%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • International
    $171M

Forward guidance

The company expects all four segments to deliver sales and earnings growth in fiscal year 2022. Strength in the Planters snack nuts business and organic growth in each segment will drive growth in excess of the company's long-term growth goals.

Tailwinds

  • Continued strong demand across all businesses
  • Improved production throughput
  • Impact of pricing actions
  • Strategic investments including capacity expansions for pizza toppings, dry sausage, and bacon
  • Full year of the Planters snack nuts business

Headwinds

  • Complex operating environment
  • Impact of the Jennie-O Turkey Store transformation initiatives
  • New pork raw material supply agreement
  • 52 weeks compared to 53 weeks in fiscal 2021
  • Inflationary pressure on raw materials, freight and operational expenses

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 2021

Historical avgQ4 2021

-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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