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Jul 28, 2024
Hormel Q3 2024 Earnings Report
Hormel's Q3 2024 earnings exceeded expectations, driven by key retail brand growth, strong foodservice performance, and international segment recovery, with increasing benefits from the transform and modernize initiative.
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
Hormel Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comFoodservice Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income