Benzinga -
- Hormel Foods Corp (NYSE: NYSE:HRL) reported a fourth-quarter FY22 sales decline of 5% year-on-year to $3.28 billion, missing the consensus of $3.38 billion.
- Net sales for Refrigerated Foods decreased 7% Y/Y, Grocery Products rose 3%, Jennie-O Turkey Store fell 15%, and International & other sales declined 2%.
- EPS of $0.51 beat the analyst consensus of $0.50.
- The gross margin expanded 50 basis points Y/Y to 17.2%. The operating margin was 11.2%, and operating income for the quarter rose 3% to $367 million.
- Selling, general and administrative expenses decreased 10.4% Y/Y to $206.5 million.
- The company held $998 million in cash and equivalents as of October 30, 2022. Cash provided by operating activities for the quarter totaled $372 million, down 34% Y/Y.
- "We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023," said Jim Snee, chairman, president and CEO.
- The company's quarterly dividend of $0.2750 a share will be paid on February 15, 2023, to stockholders of record on January 17, 2023.
- Outlook: HRL sees FY23 net sales of $12.6 billion - $12.9 billion versus the consensus of $13.01 billion.
- The company sees FY23 EPS of $1.83 - $1.93 versus the Street view of $2.00.
- Price Action: HRL shares are trading lower by 7.10% at $44.77 in premarket on the last check Wednesday.
- Photo Via Company