Hormel Foods (HRL) Reports Earnings Tomorrow: What to Expect

Tomorrow morning, packaged food company Hormel (NYSE:HRL) will report earnings. Here’s what to look for.

Hormel Foods beat analysts’ revenue expectations by 2.8% in the most recent quarter, reporting revenue of $3.00 billion year over year. It was a very strong quarter for the company, after solidly beating analyst earnings estimates.

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Analysts expect Hormel Foods’ revenue to be flat year-over-year at $2.97 billion this quarter, an improvement from the 3.8% decline reported in the same quarter last year. Adjusted earnings per share are expected to be $0.36.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Over the past two years, Hormel Foods has topped Wall Street revenue estimates five times.

Looking at Hormel Foods’ competitors in the shelf-stable food segment, some of them have already reported first-quarter results, which gives us a hint of what to expect. Hershey reported revenue growth of 8.9% year-over-year, beating analyst expectations by 4.5%, and BellRing Brands reported revenue growth of 28.3%, beating estimates by 5.9%. After the results were announced, the Hershey share price did not change, while the BellRing Brands share price increased by 2.1%.

Read our full analysis of Hershey’s results here and BellRing Brands’ results here.

Investors in the shelf-stable food segment could count on stable profits, and share prices have not changed over the last month. Meanwhile, Hormel Foods is down 2.4% and heading toward earnings, with an average analyst price target of $31.8 (versus the current share price of $34.7).

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