Hormel: One Of The Safest Stocks In The Market Looks Like A Potential Double
Joe Springer • 33 Comments
Joe Springer • 33 Comments
Premium-Priced Hormel Sells Off On A Less Than Perfect Quarter
Stephen Simpson, CFA
Stephen Simpson, CFA
Jul. 1, 2014, 8:44 AM
- Hormel's (HRL) purchase of CytoSport for $450M has raised a few eyebrows in the food sector.
- The high price tag for the maker of Muscle Milk indicates some other bidders were on the prowl for a quick entry into the sports nutrition category, theorize analysts.
- Shares of Vitamin Shoppe (VSI) and GNC Holdings (GNC) are on watch.
Jun. 30, 2014, 6:27 PM
- Hormel (HRL) is buying CytoSport Holdings, maker of Muscle Milk protein drinks and other high-protein products, for $450M.
- With CytoSport expected to have 2014 sales of $370M, Hormel is paying ~1.2x forward sales. The deal is expected to be neutral to FY14 (ends Oct. '14) EPS, and be accretive to FY15 EPS by $0.05.
- Hormel: "Muscle Milk products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category ... The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers."
Jun. 30, 2014, 5:49 PM| Jun. 30, 2014, 5:49 PM | 1 Comment
Jun. 12, 2014, 2:17 PM
- After missing out on Hillshire Brands and Smithfield Foods, Brazilian food giant JBS S.A. (JBSAY) has a narrower list of acquisition targets, according to Deutsche Bank.
- Oscar Meyer (KRFT) and Hormel Foods (HRL) are two big-target options for JBS, while Maple Leaf Foods MFI and Sanderson Farms SAFM are on the lighter side.
Jun. 12, 2014, 8:39 AM
- Global consumption of meat will increase 1.9% a year over the next decade as demand for protein in nations such as China, Mexico, and Brazil supports the market.
- The UN's Food and Agriculture Organization forecasts that by 2030 the average person will eat close to 99 pounds of meat per year, compared to 86 pounds in 2007.
- The steady rise in protein demand has underpinned a wave of merger activity in the food sector including Tyson Foods' takeover of Hillshire Brands and Shuanghui International's acquisition of Smithfield Foods.
- Related stocks: TSN, HRL, SAFM, SEB, HSH, PPC
May 28, 2014, 7:30 AM
- An outbreak of a deadly pig virus at a farm in Indiana has rekindled fears the disease will reduce the U.S. hog population.
- The incident was a secondary outbreak which raises concerns that affected pigs aren't developing full immunity to the virus.
- Hog futures are up 26% since the PEDV first hit last summer.
- Related stocks: TSN, HRL, HSH, SEB, PPC
- Related ETFs: UBC, COW, LSTK.
May 27, 2014, 10:11 AM
- Shares of Tyson Foods (TSN +3.5%), Hormel (HRL +2.6%), and Sanderson Farms (SAFM +2.5%) all trade higher after the merger profile of the sector gets a lift from Pilgrim Pride's aggressive pursuit of Hillshire Brands.
- Though food industry analysts see long-term potential for the sector through consolidation, they warn the merger premium is getting played out.
May 21, 2014, 7:55 AM
- Hormel (HRL) drove sales higher in FQ2 off of price increases as total volume ended up down 1% from last year.
- The integration of Skippy peanut butter helped to boost results in the U.S. and globally.
- Segment sales growth: Grocery Products -0.4% to $392M; Refrigerated Foods +9.9% to $1.11B; Jennie-O Turkey Store -1.1% to $380M; Specialty Foods -11.6% to $217M; International & Other +22.7% to $143M.
- The company's gross margin rate improved 50 bps to 16.9%.
- HRL -1.4% premarket
May 21, 2014, 6:33 AM
- Hormel Foods (HRL): FQ2 EPS of $0.52 misses by $0.04.
- Revenue of $2.24B (+4.2% Y/Y) in-line.
May 20, 2014, 5:30 PM
Apr. 28, 2014, 9:19 AM
- Shares of Tyson Foods (TSN) are higher in premarket despite despite fresh headlines on a pig virus that has devastated some hog farms.
- Analysts note the virus has been on the radar of the industry (HRL, HSH) for over 6 months and that some major producers have planned around it. Heavier hogs will offset some of the loss of headcount, according to insiders. Hedging strategies have also been utilized.
- TSN +0.5% premarket
Mar. 26, 2014, 10:45 AM
- The European Commission intends to propose new rules to regulate the production and selling of organic food.
- The changes could make it harder for companies to use the familiar organic food label on products in Europe.
- There's plenty of similar talk across the pond in the U.S. on the use of the words "organic" and "natural" on labels.
- Related stocks: SENEA, SENEB, THS, NCRA, CPB, DOLE, MDLZ, GIS, NSRGY, KRFT, TSN, FLO, CAG, DF, PPC, HRL, SJM, TSN, DF, ANFI, JJSF, PPC, WWAV, UL, DANOY, PLATF, POST, K, PEP, DMND, PF, HAIN, BNNY.
Mar. 23, 2014, 2:47 AM
- Unilever's (UL) Ragu brand is attracting interest from Hormel Foods (HRL) and J.M. Smucker (SJM), Bloomberg reports, with Pinnacle Foods (PF), Hillshire Brands (HSH), Post Holdings (POST) and Japanese grocery supplier Mizkan also eying the pasta sauce.
- First round bids for Ragu, which could bring in up to $2B, are due in at the end of this week.
- The auction adds to Unilever's sale of other famous food brands such as Skippy peanut butter last year. Ragu makes up 40% of the company's pasta-sauce sales of $1.2B and is the U.S. market leader, but revenue has fallen 18% since 2009.
Mar. 13, 2014, 1:20 PM
- Fresh food purchases at grocery stores continue to show higher growth rates than canned, packaged, and frozen food sales, and now account for 30% of all supermarket revenue..
- Organic sellers like Whole Foods Market (WFM -2.8%) account for some of the extra sales, but retail giants such as Wal-Mart (WMT -0.6%), Kroger (KR -0.7%), and Target (TGT -1.6%) are also broadening out their fresh food sections.
- Food companies on watch: SENEA, SENEB, THS, NCRA, CPB, DOLE, MDLZ, GIS, NSRGY, KRFT, TSN, FLO, CAG, DF, PPC, HRL, SJM.
Feb. 20, 2014, 6:32 AM
- Hormel Foods Corporation (HRL): FQ1 EPS of $0.57 misses by $0.01.
- Revenue of $2.24B (+6.7% Y/Y) misses by $10M.
Feb. 20, 2014, 12:05 AM
Hormel Foods Corp. engages in the production of meat and food products. The company markets its products through its subsidiary, Hormel Foods International Corp. It operates business through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods and Other.... More
Sector: Consumer Goods
Industry: Meat Products
Country: United States
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