Hormel Slashes Sales Outlook as Consumers Pull Back, Shares Drop 8%
HRL is trading near its 52-week low of $19.7 (9.4% above the low).
Summary
Hormel cut its annual sales guidance to $12.1B-$12.2B from $12.2B-$12.5B, citing weaker-than-expected volumes and higher fuel costs. Q3 revenue fell 2% to $2.96B, missing the $3.03B consensus, while adjusted EPS of $0.37 beat by $0.02. Shares fell 8% to $21.80. The company also narrowed adjusted EPS guidance to $1.45-$1.51 and disclosed the divestiture of its Brazil operations closed early Q4. This follows the Q3 earnings report earlier today; the new guidance cut and price drop are the key incremental negatives.
At the time of this announcement, HRL was trading at $21.55 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $19.70 to $29.10. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.