Hormel jumps 5% on record Q1 sales
Mar. 01, 2022 11:10 AM ETHormel Foods Corporation (HRL)By: Manshi Mamtora, CFA
- Hormel (HRL +5.1%) Q1 shows record net sales of $3B, up 24%; organic net sales up 13%.
- Operating income of $320M, up 19%
- Operating margin of 10.5%, compared to 10.9% last year
- Pretax earnings of $309M, up 11%
- GAAP EPS of $0.44, up 7% compared to last year, in-line with consensus.
- Cash flow from operations of $384M, up 87%.
- Volume of 1.2 billion lbs., up 2%; organic volume down 4%
- FY2022 sales to be in the range of $11.7B-$12.5B vs. consensus of $12.23B and diluted EPS of $1.87-$2.03 vs. consensus of $1.95.
- "We remain on track to deliver our sales and earnings guidance for the year as our team achieved its fifth consecutive quarter of record net sales and grew operating income by double digits during the first quarter. Our ability to deliver these results demonstrates the strength of our balanced business model and our exceptional execution in navigating difficult operating conditions. This is a testament to our experienced management team, clear strategic priorities and dedicated team members around the world." said Jim Snee, chairman of the board, president and CEO.
- Contributor gives buy rating to the stock and writes: 'I expect 5-10% stock appreciation in addition to a stable, increasing dividend.'
- Previously (March 1): Hormel Foods GAAP EPS of $0.44 in-line, revenue of $3.04B beats by $120M