NYSE$HRL

Hormel Foods Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hormel Foods reported results that were in line with expectations, with the Foodservice segment performing strongly but offset by pressure in Retail and International businesses.

Hormel Foods reported Q4 2023 results with net sales of $3.2 billion and diluted net earnings per share of $0.36. The Foodservice segment delivered strong results, while the Retail and International segments faced pressure. The company is investing in transformation to accelerate growth as a global branded food company.

  • Net sales were $3.2 billion.
  • Operating income was $270 million.
  • Diluted net earnings per share were $0.36.
  • Foodservice segment delivered outstanding results.

Headline financials

Total Revenue

$3.2B

Previous: $3.28B-2.6%
EPS (adj)

$0.42

Previous: $0.51-17.6%
Operating Margin

8.4%

Previous: 11.2%-25.0%
Capital Expenditures

-$102M

Previous: $89.7M-213.3%
Free Cash Flow

$217M

Previous: $282M-22.9%
Net Income

$195M

Previous: $280M-30.2%
Operating Income

$270M

Previous: $367M-26.5%
Gross Profit

$514M

Previous: $566M-9.2%
Cash & Equivalents

$737M

Previous: $982M-25.0%
Total Assets

$13.4B

Previous: $13.3B+1.1%
Stock-Based Comp

$3.13M

Previous: $4.01M-21.9%

Revenue & EPS history

Hormel · Revenue · Quarterly

$3.2B

Q4 2023-2.6%vs Q4 2022
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 2024, the Company expects net sales growth of 1% to 3% and diluted net earnings per share to be $1.43 to $1.57 and adjusted diluted net earnings per share to be $1.51 to $1.65. Earnings are expected to decline in the first half of the year but grow in the back half.

Tailwinds

  • Volume growth in key categories
  • Higher brand support and innovation
  • Benefit from incremental pricing actions
  • Current assumptions for raw material input costs
  • Segment profit growth from all three segments in the back half of the year

Headwinds

  • Lower turkey markets
  • Lower volumes in the Retail segment
  • Softness in its China business
  • Slowing consumer demand
  • Inflationary pressures

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 2023

Historical avgQ4 2023

-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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