- Hormel Foods Corp (NYSE: NYSE:HRL) reported third-quarter FY22 sales growth of 6% year-on-year to $3.03 billion, beating the consensus of $2.98 billion.
- Net sales for Refrigerated Foods increased 2% Y/Y, Grocery Products rose 25%, Jennie-O Turkey Store fell 8%, and International & other sales declined 5%.
- EPS of $0.40 missed the analyst consensus of $0.41.
- The gross margin expanded 190 basis points Y/Y to 16.7%. The operating margin was 9.6%, and operating income for the quarter rose 40% to $291 million.
- Selling, general and administrative expenses decreased 1.8% Y/Y to $222.1 million.
- The company held $869 million in cash and equivalents as of July 31, 2022. Cash provided by operating activities for the quarter totaled $186 million.
- "We expect elevated cost inflation to persist, primarily related to operations, logistics, and raw material inputs," said chairman and CEO Jim Snee.
- Outlook: Hormel raised its FY22 sales outlook to $12.2 billion - $12.8 billion from $11.7 billion - $12.5 billion versus the consensus of $12.45 billion.
- The company lowered FY22 EPS guidance to $1.78 - $1.85 from $1.87 - $1.97 versus the Street view of $1.88.
- Price Action: HRL shares are trading lower by 6.28% at $47.12 in premarket on the last check Thursday.
- Photo Via Company
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