In this file:
· Hormel Foods Struggles With Pork Market Worries & Turkey Unit
· Hormel Foods to Webcast Presentation at the dbAccess Global Consumer Conference
Hormel Foods Struggles With Pork Market Worries & Turkey Unit
Zacks Equity Research
via Yahoo Finance - June 6, 2019
Hormel Foods Corporation HRL looks troubled, owing to the challenges related to its Jennie-O Turkey segment, soft pork exports and input cost inflation. These factors also compelled management to lower its outlook for fiscal 2019, when it reported second-quarter fiscal 2019 results last month.
Given these hurdles, this Zacks Rank #5 (Strong Sell) stock has lost close to 5% in the past three months against the industry’s growth of 10.5%. Also, the Zacks Consensus Estimate for the third quarter and fiscal 2019 has moved down from 40 cents to 36 cents and from $1.81 to $1.73, respectively, over the past 30 days.
Let’s delve deeper.
Impediments in Hormel Foods’ Path
Turkey market challenges have been troubling Hormel Foods for the past few quarters. Though sales in the Jennie-O Turkey Store segment moved up in the second quarter of fiscal 2019, the unit continued witnessing retail declines. During the first quarter, revenues in the Jennie-O Turkey Store segment inched down roughly 0.5%, preceded by a decline of nearly 3.7% in the fourth quarter of 2018. Further, as the company continues to invest in the segment to regain retail distribution, it lowered expectations for the same.
Moreover, the volatile tariff environment has made things tough for Hormel Foods. Evidently, higher tariffs weighed on fresh pork export volumes, sales and profits at its International division during the second quarter of fiscal 2019. Similar headwinds were also present during the first quarter of fiscal 2019, and the fourth and third quarters of fiscal 2018. In fact, we note that management’s expectations regarding the dynamics of the pork industry in the long run led the company to sell its Fremont processing facility to WholeStone Farms in December 2018.
Additionally, second-quarter results were hampered by input cost inflation. This in turn stemmed from the African swine fever in China, which weighed on the hog and pork markets. Further, management expects input costs to remain high and affect profits at the Refrigerated Foods, Grocery Products and International categories in the second half of fiscal 2019.
The company has announced strong pricing actions...
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Hormel Foods to Webcast Presentation at the dbAccess Global Consumer Conference
Source: Hormel Foods Corporation
via PRNewswire - Jun 05, 2019
AUSTIN, Minn., June 5, 2019 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL) invites you to listen live as Jim Snee, chairman of the board, president and chief executive officer, and Tom Day, executive vice president – Refrigerated Foods, present at the 2019 dbAccess Global Consumer Conference in Paris.
Tuesday, June 11, 2019
2:00 p.m. CET (7:00 a.m. CT)
To listen to the live webcast of the presentation, go to the company's website, http://www.hormelfoods.com, click on Investors, and you will find a link to the webcast.
To listen to a replay of the webcast, go to the company's website http://www.hormelfoods.com, click on Investors, then click on News & Events and you will find a link to the webcast. The webcast will be archived for one year.
About Hormel Foods – Inspired People. Inspired Food.™
Hormel Foods Corporation, based in Austin, Minn., is a leading global branded food company with over $9 billion in annual revenues across more than 80 countries worldwide. Its brands include Skippy®, SPAM®, Hormel® Natural Choice®, Columbus®, Applegate®, Justin's®, Wholly®, Hormel® Black Label® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of "The 100 Best Corporate Citizens" by Corporate Responsibility Magazine for the 11th year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. In 2016, the company celebrated its 125th anniversary and announced its new vision for the future - Inspired People. Inspired Food.™ - focusing on its legacy of innovation. For more information, visit www.hormelfoods.com and http://csr.hormelfoods.com/.
SOURCE Hormel Foods Corporation