Hormel Foods Gears Up for Q4 Earnings: What You Should Understand

Hormel Foods Corporation HRL is likely to register bottom-line growth when it reports fourth-quarter fiscal 2024 earnings on Dec. 4. The Zacks Consensus Estimate for quarterly earnings has remained unchanged for the last 30 days at 43 cents per share, indicating growth of 2.4% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2024 earnings is pegged at $1.58 per share, reflecting a 1.9% decline from the prior year’s reported figure. HRL has a trailing four-quarter earnings surprise of 6.3%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Hormel Foods’ top line is expected to decline year over year in the fiscal fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.1 billion, which indicates a 1.9% decrease from the year-ago quarter. The consensus mark for fiscal 2024’s top line is pegged at $11.9 billion, which indicates a decline of 1.6% from the year-ago level.Hormel Foods Corporation Price and EPS Surprise Hormel Foods Corporation price-eps-surprise | Hormel Foods Corporation QuoteThings to Know About HRL’s Upcoming ResultsThe production disruption at Hormel Foods’ Planters facility in Suffolk, VA, has been a notable setback, directly impacting its ability to meet demand for its snack nuts portfolio. This disruption impacted operations throughout the fiscal third quarter and is expected to have continued into the fourth quarter, creating uncertainty about Hormel Foods' performance.In addition to the production disruption, Hormel Foods is grappling with several challenges, including pressures from the turkey commodity market and declining sales in its International segment. The company's contract manufacturing business has been experiencing ongoing softness, which remains a concern for the Retail segment. The Zacks Consensus Estimate for fiscal fourth-quarter revenues in Hormel Foods' Retail segment is pegged at $1,882.8 million, reflecting a year-over-year decline from $1,983.3 million reported in the year-ago quarter. Furthermore, management anticipates high advertising costs in fiscal 2024, posing a continued threat to its profitability.For fiscal 2024, Hormel Foods projects net sales between $11.8 billion and $12.1 billion, with adjusted earnings per share (EPS) expected in the range of $1.57-$1.63. This guidance takes into account the impact of production disruptions at the Suffolk, VA, facility, as well as the financial effects of storm damage at its Papillion, NE, facility.That being said, the company’s focus on the Transform and Modernize initiative is likely to have offered respite. In this regard, management’s focus on supply chain efficiency, portfolio optimization and data and analytics bodes well. Hormel Foods is also reaping benefits from growth in demand for Foodservice products. The Zacks Consensus Estimate for fiscal fourth-quarter revenues in Hormel Foods' Foodservice segment is pegged at $1,084.2 million, reflecting year-over-year growth from $1,032.4 million reported in the year-ago quarter.Earnings Whispers for HRLOur 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 odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.HRL carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.Some Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time.Casey's General Stores CASY currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.01 billion, which implies a 1.4% decline from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.CASY’s bottom line is anticipated to remain flat year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.24 per share. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.Dollar Tree DLTR has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register growth in its top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.45 billion, which indicates 1.9% growth from the figure reported in the prior-year quarter.The consensus estimate for Dollar Tree’s quarterly earnings has risen by 1 cent over the past 30 days to $1.07 per share. The figure calls for an increase of 10.3% from the year-ago quarter’s number. DLTR delivered an average negative earnings surprise of 10.9% in the trailing four quarters.The Simply Good Foods Company SMPL currently has an Earnings ESP of +3.87% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at 45 cents, which implies a 4.7% increase year over year.The Zacks Consensus Estimate for The Simply Good Foods Company’s quarterly revenues is pegged at $347.3 million, which indicates growth of 12.5% from the figure reported in the prior-year quarter. SMPL has a trailing four-quarter earnings surprise of 5.3%, on average.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Casey's General Stores, Inc. (CASY): Free Stock Analysis Report The Simply Good Foods Company (SMPL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks