Hormel Foods to Release Q1 Earnings: Should You Expect a Beat?

Hormel Foods Corporation HRL is likely to register a decline in its top and bottom lines when it reports first-quarter fiscal 2025 earnings on Feb. 27. The Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the last 30 days to 38 cents per share, indicating a decrease of 7.3% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.9 billion, which indicates an almost 2% decrease from the year-ago quarter. HRL has a trailing four-quarter earnings surprise of 7.4%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Things to Know About HRL’s Upcoming ResultsHormel Foods has been facing rising selling, general and administrative (SG&A) expenses for some time now. The company is dealing with increased employee-related costs and expenses linked to its Transform and Modernize (T&M) initiative. Looking ahead, management has projected a further rise in SG&A expenses and an increase in advertising spending for fiscal 2025, which is likely to have impacted the company’s profitability in the to-be-reported quarter.In addition, the production disruption at Hormel Foods’ Planters facility in Suffolk, VA, has posed a significant challenge, affecting the company’s ability to meet demand for its snack nuts portfolio. Although the company has made progress in addressing the disruption, it anticipates some near-term commercial impacts and increased costs, particularly in the fiscal first quarter. Management expects a negative earnings per share (EPS) impact of 4-5 cents in the quarter, primarily due to lower year-over-year whole bird prices and the Suffolk production disruption.Hormel Foods Corporation Price and EPS Surprise Hormel Foods Corporation price-eps-surprise | Hormel Foods Corporation QuoteDespite these challenges, Hormel Foods' commitment to innovation has bolstered its market position, while the T&M initiative is aimed at enhancing production efficiency and supply-chain management. Growing demand for Foodservice products has been offering respite.Earnings Whispers for HRLOur proven model predicts 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 the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Hormel Foods carries a Zacks Rank #3 and has an Earnings ESP of +0.66%.Other Stocks With the Favorable CombinationHere are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.Costco Wholesale COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.Home Depot HD currently has an Earnings ESP of +1.29% and a Zacks Rank of 3. The company is likely to register growth in its top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Home Depot’s quarterly revenues is pegged at $39.14 billion, which suggests an increase of 12.5% from the prior-year quarter.The Zacks Consensus Estimate for Home Depot’s quarterly earnings per share is pegged at $3.04, indicating 7.8% growth from the year-ago period. HD has a trailing four-quarter earnings surprise of 2.3%, on average.Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 The Home Depot, Inc. (HD): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Grocery Outlet Holding Corp. (GO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks