Hormel Foods Corp. on May 24 reported fiscal second-quarter results that missed analysts' expectations as revenue from its turkey and grocery businesses fell on an organic basis, but it confirmed its guidance for the fiscal year.
The maker of Spam luncheon meat and Dinty Moore beef stew said diluted EPS for the 13 weeks ended April 29 rose to 44 cents from 39 cents in the same period a year ago. The S&P Capital IQ mean consensus of analysts' estimates had forecast normalized EPS of 45 cents.
Net earnings attributable to Hormel Foods Corp. rose 12.5% year over year to $237.4 million from $210.9 million but were below the S&P Capital IQ consensus estimate for net income excluding exceptional items of $244.6 million with four analysts reporting.
Net sales at the Austin, Minn.-based company rose 7% to $2.33 billion from $2.19 billion. On an organic basis, which excludes the impact of acquisitions, divestitures and changes in the values of foreign currencies, sales were flat from the same quarter in 2017.
While sales grew on an organic basis within the company's refrigerated foods business, Hormel said organic sales fell during the quarter within its grocery products and Jennie-O turkey segments.
The company confirmed its previous guidance for fiscal 2018. The company continues to expect net sales of between $9.70 billion and $10.10 billion and EPS of between $1.81 and $1.95.
