Yahoo Finance Hormel Foods (HRL) Queued for Q2 Earnings: Factors to Note
Hormel Foods Corporation HRL is likely to register a top-and-bottom-line decline when it reports second-quarter fiscal 2023 earnings on Jun 1. The Zacks Consensus Estimate for revenues is pegged at $3,060 million, suggesting a decrease of 1.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 39 cents per share. The projection indicates a decline of 18.8% from the figure reported in the year-ago period quarter. Hormel Foods has a trailing four-quarter negative earnings surprise of 1.8%, on average.
Factors to Consider
Hormel Foods’ earnings have been under pressure due to higher inefficiencies in the supply chain stemming from increased inventory levels and softness in the snack nuts unit. In the first quarter of fiscal 2023, volumes in the Retail segment fell 13% year over year. The Foodservice segments volumes fell 6% in the fiscal first quarter. Volumes in the International unit went down 27%.
Hormel Foods Corporation Price, Consensus and EPS Surprise
Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote
Planned volume declines across commodity pork and volume impacts on the turkey supply chain due to avian influenza or HPAI affected volumes. Any persistence of these factors remains a concern for the quarter under review.
Hormel Foods continues to operate in a volatile, complex and high-cost environment. Per the last earnings call, the company’s retail businesses, especially in the center store, continue to be disproportionately affected by increased inflationary pressures. That said, management has been on track with stabilizing margin pressures via pricing actions, operational cost management and supply-chain cost-saving initiatives.
Moreover, the favorable demand for its leading retail brands and strength in the Foodservice business are likely to have aided performance. Increased brand investments, innovation and HRL’s initial Go Forward initiative actions also bode well.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hormel Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Hormel Foods has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Campbell Soup CPB currently has an Earnings ESP of +0.58% and a Zacks Rank #3. The company’s top line is expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Campbell Soup’s quarterly revenues is pegged at $2.2 billion, which implies a rise of 4.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 65 cents, which indicates a 7.1% decline from the year-ago period figure. CPB has a trailing four-quarter earnings surprise of 10.7%, on average.
lululemon athletica LULU currently has an Earnings ESP of +0.24% and a Zacks Rank of 3. LULU is expected to register a top-line and bottom-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.97 suggests growth of 33.1% from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Constellation Brands STZ currently has an Earnings ESP of +5.63% and a Zacks Rank of 3. STZ is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting growth of 4.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Constellation Brands’ quarterly earnings has remained the same at $2.80 per share in the past 30 days. The consensus estimate indicates growth of 5.3% from the figure reported in the prior-year quarter. STZ has a trailing four-quarter earnings surprise of nearly 5.2%, on average.
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Campbell Soup Company (CPB) : Free Stock Analysis Report
Hormel Foods Corporation (HRL) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
