Hormel Q2 2024 Earnings Report
Key Takeaways
Hormel Foods Corporation reported second quarter fiscal 2024 results, with net sales of $2.89 billion and diluted net earnings per share of $0.34. The company is updating its full-year earnings outlook, reaffirming its net sales growth outlook of 1% to 3% and updating its expectations for diluted net earnings per share to $1.45 to $1.55.
Delivered a strong first half with better-than-expected earnings.
Made further progress on strategic initiatives.
Updating full-year earnings outlook due to solid first-half performance.
Team remains focused on growing operating income and driving savings.
Hormel
Hormel
Forward Guidance
Hormel Foods is reaffirming its net sales growth outlook of 1% to 3%. Updating its expectations for diluted net earnings per share to $1.45 to $1.55 and its expectations for adjusted diluted net earnings per share to $1.55 to $1.65.
Positive Outlook
- Reaffirming net sales growth outlook of 1% to 3%.
- Updating diluted net earnings per share expectations to $1.45 to $1.55.
- Updating adjusted diluted net earnings per share expectations to $1.55 to $1.65.
- Assuming continued benefits to net earnings from its transform and modernize initiative.
- The Company expects full-year advertising expense to increase compared to the prior year.
Challenges Ahead
- Including net sales and earnings pressure from a significant year-over-year decline in whole bird turkey markets.
- Including the estimated impact of an unplanned production interruption at its Suffolk, Virginia, facility.
- Effective tax rate of 22.0 - 23.0%.
- The Company's target for capital expenditures in fiscal 2024 is $280 million.
- The full-year expense for fiscal 2024 is expected to be approximately $250 million.