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Jul 31, 2022
Hormel Q3 2022 Earnings Report
Hormel Foods reported record sales and earnings growth for the seventh consecutive quarter.
Key Takeaways
Hormel Foods reported a strong third quarter with record net sales of $3.0 billion, a 6% increase, and operating income of $291 million, a 40% increase. The company has revised its full year sales guidance upwards but lowered its earnings guidance due to persistent inflationary pressures.
Record net sales of $3.0 billion, up 6%; organic net sales up 3%.
Operating income of $291 million, up 40%; up 17% compared to adjusted operating income of $248 million last year.
Diluted earnings per share of $0.40, up 25%; up 3% compared to adjusted diluted earnings per share of $0.39 last year.
Cash flow from operations of $186 million, up 143%.
Forward Guidance
Hormel Foods has revised its full year sales guidance upwards to $12.2 - $12.8 billion and diluted earnings per share guidance to $1.78 - $1.85.
Positive Outlook
- Strong demand for foodservice brands
- Strong demand for center store grocery brands
- Higher turkey markets
- Pricing actions across the portfolio
- Ability to exceed previous sales guidance
Challenges Ahead
- Elevated cost inflation
- Inflation primarily related to operations
- Inflation primarily related to logistics
- Inflation primarily related to raw material inputs
- Escalated cost pressures are viewed as transient
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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