Hormel Foods (HRL) Experienced Sales Decline in Q2 FY2024, Falling Short of Expectations Due to Mixed Performance Across Segments
May 30, 2024
In numbers, HRL’s Sales decreased by 3% YoY, plunging to $2.887 billion, which did not meet the consensus estimate of $2.967 billion. However, the company managed to achieve adjusted earnings per share, EPS, of 38 cents, slightly surpassing the consensus estimate of 36 cents. Additionally, Hormel Foods saw a gross margin expansion of 95 basis points compared to the previous year.
In terms of annual segment sales, there was a decline of 6.7% in retail sales, but a gain of 5.7% in its Foodservice, and a decrease of 7.3% in international sales.
In YoY terms, there was a decrease of 3.6% in the total volume shipped. Retail experienced a decline of 5.4%, while Foodservice saw an increase of 2.9%. On the other hand, International sales kept losing steam at a rate of 7.2%.
The company has revised its projections for diluted net earnings per share, EPS, to a range of $1.45 to $1.55, which came in slightly lower than the previous range of $1.43 to $1.57. Additionally, the company has adjusted its expectations for adjusted diluted net EPS to a range of $1.55 to $1.65, compared to the previous range of $1.51 to $1.65.
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