Hormel Q3 2024 Earnings Report
Key Takeaways
Hormel Foods reported solid third-quarter results with better-than-expected earnings. Key retail brands grew, the Foodservice business delivered above-industry growth, and the International segment experienced significant recovery. The company is updating its net sales range expectations to $11.8 billion to $12.1 billion and narrowing its expected diluted net earnings per share range to $1.45 to $1.51.
Volume was 1.02 billion lbs.
Net sales reached $2.90 billion.
Operating income was $237 million, with an adjusted operating income of $267 million.
Diluted net earnings per share were $0.32, with adjusted diluted net earnings per share at $0.37.
Hormel
Hormel
Forward Guidance
For fiscal year 2024, the Company is updating its net sales range expectations to $11.8 billion to $12.1 billion and narrowing its expected diluted net earnings per share range to $1.45 to $1.51 and its adjusted diluted net earnings per share range to $1.57 to $1.63.
Positive Outlook
- Continued momentum across many key retail brands.
- Growth within Foodservice and International businesses.
- Improved service levels for the Planters snack nuts business.
- Further advancements of our transform and modernize initiative.
- Assuming continued benefits to net earnings from its transform and modernize initiative.
Challenges Ahead
- Lower-than-expected commodity markets.
- Production disruptions at its Suffolk, Virginia, facility.
- Declines in its contract manufacturing business.
- Including an updated estimate of $0.06 per share impact related to production disruptions at its Suffolk, Virginia, facility.
- Assessing the financial impact related to storm damage at its Papillion, Nebraska, facility.