What to Expect When Hormel Foods (HRL) Releases Q2 2024 Financial Results

Shares of Hormel Foods Corporation (NYSE: HRL) fell more than 1% on Tuesday. The company’s stock has gained 13% over the past three months. The company is scheduled to report second-quarter 2024 results on Thursday, May 30, before markets open. Here’s what to expect from your earnings report:

Income

Analysts forecast Hormel’s revenue of $2.97 billion in the second quarter of 2024. This compares with sales of $2.98 billion recorded in the same quarter a year ago. In the first quarter of 2024, sales increased almost 1% to $2.99 ​​billion.

Profits

The consensus EPS target for Q2 2024 is $0.36 compared to EPS of $0.40 reported in Q2 2023. For Q1 2024, adjusted EPS was $0.41.

Points worth noting

Last quarter, Hormel reported widespread sales volume growth across all of its businesses, driven by brand strength and strong demand for foodservice products. It benefited from strong retail demand for products such as Skippy peanut butter, Planters snack nuts and Hormel pepperoni, which led to increased volume and sales.

In its earnings statement, the company said it expects higher sales across multiple verticals in its retail segment for the full year, which could be a positive sign for the second quarter. It also expects the retail business to face pressure from whole turkey sales growth and uncertain consumer conditions.

Hormel’s foodservice business benefited from strong volume and sales growth in the most recent quarter, led by gains in the premium bacon and prepared proteins, poultry and snacks markets. The company expects turkey, pepperoni and bacon to see the biggest volume and sales growth this year, which bodes well for the second quarter.

Hormel is also expected to benefit from international business momentum, which is expected to accelerate during the year with its Skippy and SPAM and refrigerated brands. It can be expected that this dynamics will also translate into the results for the second quarter.