trending Market Intelligence /marketintelligence/en/news-insights/trending/uy6xx4ogdniofh8_fsiveg2 content esgSubNav
In This List

Hormel Foods quarterly increases in profit, revenue

Blog

Corporate Credit Risk Trends in Developing Markets An Expected Credit Loss ECL Perspective

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Blog

Corporate Credit Risk Trends in Developing Markets: A Loss Given Default (LGD) Perspective

Blog

Q&A: Data That Delivers - Automating the Credit Risk Workflow


Hormel Foods quarterly increases in profit, revenue

Hormel Foods Corp. reported net income for the quarter ended Jan. 28 of $303.1 million, up from $235.2 million in the year-ago period.

Diluted earnings rose 27% to 56 cents per share in the first fiscal quarter of 2018 from 44 cents per share in the prior year. Hormel recorded a one-time noncash tax benefit of $68 million and a $5 million charge related to the new U.S. tax law. "Tax reform will have a clear benefit and allow us to increase investments into our business to drive long-term profitable growth," said CEO Jim Snee.

Net sales for the packaged foods and meats producer came in at $2.33 billion during the quarter, higher than the $2.28 billion in the prior-year period. Operating income was down to $306.6 million in the quarter from $355.4 million of the previous year.

The company raised its outlook for full fiscal year 2018 to a per share range of $1.81 to $1.95, compared to previous guidance of $1.62 to $1.72. The company maintained its expectations for fiscal 2018 net sales in the range of $9.70 billion to $10.10 billion.

For fiscal 2018, the company is projecting a slower-than-expected recovery at its Jennie-O Turkey Store as it struggles with "difficult operating environment in the turkey industry," Snee said. The store saw a dip in net sales during the first quarter of fiscal 2018 to $390.7 million from $421.0 million in the prior year.

Hormel declared a dividend of 18.75 cents per share for the quarter, up from 17 cents per share of the previous year.