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
Mon, Jun. 6, 10:04 AM
- BMO Capital takes a dimmer view on the upside for meat producers after factoring in the strong rally in the sector which has pushed up valuation levels.
- Tyson Foods (TSN -3.4%) and Pilgrim's Pride (PPC -3%) are both moved by BMO to Market Perform from Outperform.
- BMO set a price target of $69 on TSN and PPC caught a $27 PT.
- It's a weak day across the sector with Sanderson Farms (SAFM -1.9%), Hormel (HRL -0.7%) and JBS (OTCQX:JBSAY -2.3%) ADRs all lower.
- Related sector news: Plant-based hamburger startup creates some interesting sizzle (June 4)
Wed, May 18, 6:56 AM
- Hormel Foods (NYSE:HRL) reports volume down 1% in FQ2.
- Revenue by segment: Grocery Products: $401.47M (+1.1%); Refrigerated Foods: $1.09B (+6.8%); Jennie-O Turkey Store: $423.54M (-3.5%); Specialty Foods: $272.48M (-5.2%); International & Other: $110.26M (-17.2%).
- Gross profit rate improved 270 bps to 22.9%.
- SG&A expense rate expanded 90 bps to 9.2%.
- Operating margin rate grew 190 bps to 14.1%.
- The company expects FY2016 diluted EPS to be in the range of $1.56 to $ 1.60.
Mon, May 9, 1:59 PM
- Select food stocks are rallying after commentary from Tyson Foods management points to favorable trends in the industry on the demand and cost side.
- Tyson expects "good" cattle supply for this summer and into 2017. The company delivered improved beef and chicken margins in Q1.
- Meat stocks Sanderson Farms (SAFM +2%), Hormel Foods (HRL +3.3%), and Pilgrim's Pride (PPC +4%) are all solidly higher, while on a broader sector view WhiteWave Foods (WWAV +1.8%) and ConAgra Foods (CAG +1.5%) are also rallying.
- Previously: Tyson Foods at all-time high after earnings dazzle (May 9)
- Previously: Tyson Foods to expand presence on Amazon Fresh (May 9)
Tue, Apr. 5, 7:48 AM
- BB&T Capital downgrades Hormel Foods (NYSE:HRL) to an Underweight rating.
- The valuation call from BB&T follows a strong +50% run for Hormel over the last year after meat stocks fell into favor with investors.
- Shares of Hormel are down 1.75% in premarket trading.
- Now read Hormel Food Corporation: Where's The Beef? A Total Return Growth Company
Wed, Feb. 17, 7:47 AM
- Jefferies downgrades Hormel (NYSE:HRL) to a Hold from Buy after shares blazed to an all-time high of $45.72 yesterday after earnings were reported.
- The investment firm sets a price target of $43 on the meat stock.
- Hormel trades at 30X 2016 earnings, a mark above its historic multiple.
- Previously: Volume down for Hormel Foods in FQ1 (Feb. 16 2016)
- Previously: Hormel Foods beats by $0.06, misses on revenue (Feb. 16 2016)
- Previously: All-time high for Hormel after M&A pays off (Feb. 16 2016)
Tue, Feb. 16, 6:46 AM
- Hormel Foods (NYSE:HRL) reports volume fell 3% in FQ1.
- Revenue by segment: Grocery Products: $392.22M (-4.3%); Refrigerated Foods: $1.16B (+1.6%); Jennie-O Turkey Store: $372.07M (-15.4%); Specialty Foods: $237.78M (-9.7%); International & Other: $128.49M (-6.8%).
- Gross profit rate rose 570 bps to 24.3%.
- SG&A expense rate grew 170 bps to 9.2%.
- Segment operating profit rate increased 510 bps to 16.3%.
- The company expects FY2016 diluted EPS to be in the range of $1.50 to $ 1.56.
Dec. 14, 2015, 9:07 AM
Dec. 3, 2015, 12:45 PM
- Sanderson Farms (NASDAQ:SAFM) is up 8% after catching a two-notch upgrade from CLSA to Outperform.
- Pilgrims Pride (NASDAQ:PPC) stays in an uptrend with a 4.8% swing higher, while global player JBS (OTCQX:JBSAY) is up 5.5%.
- Tyson Foods (NYSE:TSN) is 1.70% higher and reached an all-time best of $51.83 earlier.
- Hormel (NYSE:HRL) also set an all-time high by jumping to $77.00.
- Better-than-expected pricing in the wake of industry consolidation has helped the meat sector this year.
Nov. 24, 2015, 6:50 AM
- Hormel Foods (NYSE:HRL) reports volume fell 2% in FQ4.
- Revenue by segment: Grocery Products: $422.57M (+4.3%); Refrigerated Foods: $1.15B (-5.1%); Jennie-O Turkey Store: $420.31M (-17.6%); Specialty Foods: $269.9M (-2.8%); International & Other: $138.59M (-0.4%).
- Gross profit rate improved 390 bps to 20.6%.
- SG&A expense rate grew 140 bps to 7.9%.
- Segment operating profit rate increased 280 bps to 13.4%.
- The company expects FY2016 diluted EPS to be in the range of $2.85 to $ 2.95.
Nov. 23, 2015, 10:15 AM
- Pilgrim's Pride (PPC +4.2%), Sanderson Farms (SAFM +2.9%), and Hormel Foods (HRL +1.5%) rally after Tyson Foods' earnings report shows some bright spots.
- Pricing in Tyson's prepared foods segment was particularly strong with the consolidation of Hillshire Brands and Tyson appearing to be a significant factor in the meat sector.
- Previously: Tyson Foods misses by $0.05, beats on revenue (Nov. 23 2015)
- Previously: Beef brings down Tyson's bottom line in FQ4 (Nov. 23 2015)
Oct. 27, 2015, 10:16 AM
- Tyson Foods (TSN -1.2%) and Hormel Foods (HRL -1.3%) are lower again as a damaging report from the World Health Organization's cancer research arm is digested.
- Earlier today, the meat industry put up a vigorous defense.
- Both stocks are still way ahead of the S&P 500 Index for the year.
- Previously: Cancer report and downgrade weigh on meat sector (Oct. 26 2015)
- Previously: Meat industry fights back against cancer hazard classification (Oct. 27 2015)
Oct. 26, 2015, 2:39 PM
- Tyson Foods TSN is down 4.76% after JPMorgan takes off a bull call on the meat stock with shares at record levels.
- The slide could also be tied to an announcement from the World Health Organization on the cancer risk from processed meat.
- Hormel (HRL -1%), Sanderson Farms (SAFM -0.7%), Pilgrim's Pride (PPC -1.7%), and Seaboard (SEB -0.3%) are also lower on the day.
- Full report from the International Agency for Research on Cancer
- Previously: WHO to reveal red meat cancer risk (Oct. 26 2015)
Aug. 19, 2015, 7:49 AM
- Hormel Foods (NYSE:HRL) reports volume rose 3% in FQ3.
- Revenue by segment: Grocery Products: $388.09M (+7.9%); Refrigerated Foods: $1.06B (-11.4%); Jennie-O Turkey Store: $336.53M (-12.1%); Specialty Foods: $282.77M (+30.7%); International & Other: $125.06M (-6.5%).
- Gross profit rate improved 280 bps to 18.7%.
- Segment operating profit rate increased 100 bps to 10.8%.
- The company expects FY2015 adjusted EPS to be in the range of $2.57 to $ 2.63 and GAAP EPS in the range of $2.52 to $2.58.
May 27, 2015, 10:13 AM
- Hormel (HRL +3.1%) is drawing some attention for its purchase of the Applegate brand yesterday.
- Analysts note the transaction gives the company a quick entry into the organic and natural meats space with a distinctive brand.
- The move also brings Hormel closer to the diversification strategy pulled off by food peers Campbell Soup and General Mills.
- Previously: Hormel Foods lands Applegate for $775M (May. 26 2015)
May 20, 2015, 6:52 AM
- Hormel Foods (NYSE:HRL) reports volume rose 5% in FQ2.
- Revenue by segment: Grocery Products: $397.27M (+1.3%); Refrigerated Foods: $1.02B (-8%); Jennie-O Turkey Store: $438.91M (+15.4%); Specialty Foods: $287.42M (+32.3%); International & Other: $133.23M (-7.5%).
- Gross profit rate increased 329 bps to 20.16%.
- Adjusted segment operating profit rate grew 266 bps to 12.60%.
- The company expects FY2015 adjusted EPS to be at the lower end of previously stated guidance range of $2.50 to $ 2.60.
Apr. 21, 2015, 9:07 AM
- Hormel Foods (NYSE:HRL) discloses sales volume could be lower this year due to outbreaks of the avian influenza.
- The company says several of its turkey farms have been impacted.
- "Tight meat supplies and operational challenges will pressure earnings in the back half of our fiscal year," warns management.
- Previously: Poultry stocks on watch after bird flu hits large Iowa farm
- HRL -0.90% premarket.
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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