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Apr 28, 2024
Hormel Q2 2024 Earnings Report
Hormel Foods reported better-than-expected first-half earnings and advanced transform and modernize initiative.
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
Hormel Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comFoodservice Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income