Shares of Hormel Foods (NYSE: HRL) jumped 14.6% on Thursday after the food processing company announced stronger-than-expected quarterly results.
On Hormel's broad-based strength
For its fiscal first-quarter 2024 ended Jan. 28, 2024, Hormel's quarterly net sales grew 0.9% year over year to $2.997 billion, translating to adjusted (non-GAAP) net income of $226.8 million, or $0.41 per share. Analysts, on average, were only expecting earnings of $0.34 per share on revenue of $2.91 billion.
Hormel also made substantial progress bolstering its cash flows; operating cash flow soared 98% year over year during the quarter to $404 million.
Hormel Chairman and CEO Jim Snee called it a "strong" quarter, crediting better-than-anticipated performances from each of Hormel's business segments as well as progress against the company's previously announced "transformation and modernization" initiatives.
"We are especially encouraged by broad-based volume growth across our businesses, reflecting the strength of our leading brands, robust demand for our foodservice products and momentum in our Planters snack nuts business," Snee added.
What's next for Hormel investors?
Looking ahead to the rest of the year, Hormel reiterated guidance for full fiscal-year 2024 net-sales growth of 1% to 3%, as well as its outlook for adjusted net earnings per share of $1.51 to $1.65.
In the end, Hormel's results aren't exactly dropping any jaws today. But the company obviously stepped over a low bar this quarter with relative outperformance from every segment. With shares down nearly 30% over the past year leading into this report, the stock is simply responding in kind.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
