Whole-bird turkey prices continue to impact financial performance

  • Hormel Foods Corp.’s stock fell 4% after reporting lower-than-expected sales and lowered guidance for fiscal 2024
  • Lower prices for whole-bird turkeys impacted the company’s performance
  • Cost-cutting and modernization program underway at Hormel Foods
  • Net income increased to $176.7 million from $162.7 million in the previous year
  • Sales fell to $2.898 billion, below the FactSet consensus of $2.951 billion
  • Volume and net sales growth seen in turkey, bacon, pepperoni categories
  • International segment volume down 13%, sales down 2% but segment profit up 78%
  • Fiscal 2024 earnings guidance lowered to $1.57-$1.63 from previous $1.55-$1.65
  • Sales expectations now range from $11.8 billion to $12.1 billion, down from $12.2 billion to $12.5 billion

Hormel Foods Corp.’s stock fell by 4% after the company reported lower-than-expected sales for the fiscal third quarter and lowered its guidance for fiscal 2024. The company has been facing pressure from continued low whole-bird turkey prices, a production interruption at a Planters facility in Virginia, and lower center-store and contract manufacturing volumes. Despite these challenges, Hormel is implementing cost-cutting measures and modernization efforts. Net income increased to $176.7 million from $162.7 million in the previous year. Sales fell to $2.898 billion, below the FactSet consensus of $2.951 billion. The company expects adjusted EPS to range from $1.57 to $1.63 and sales to range from $11.8 billion to $12.1 billion, down from previous guidance of $12.2 billion to $12.5 billion.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Hormel Foods Corp.’s financial performance, including specific numbers and comparisons to previous periods and industry benchmarks. It also includes quotes from the company’s CEO and details on their guidance for future earnings and sales. The information is relevant to the topic of the company’s financial situation and does not include any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Hormel Foods Corp.’s financial performance and guidance, including specific details on sales, earnings, and market comparisons. It also mentions the reasons for the company’s underperformance (lower prices for whole-bird turkeys, production interruption, and cost-cutting measures). However, it does not delve into long-term trends or possibilities, hold powerful people accountable, or provide actionable insights.
Public Companies: Hormel Foods Corp. (HRL), S&P 500 (SPX)
Key People: Jim Snee (Chief Executive)

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Financial Relevance: Yes
Financial Markets Impacted: Hormel Foods Corp.’s stock fell 4%, impacting the company’s financial performance and adjusting its guidance for fiscal 2024 earnings. The S&P 500 is also mentioned.
Financial Rating Justification: The article discusses Hormel Foods Corp.’s financial performance, including lower sales and adjusted EPS, as well as the impact on their stock price and updated guidance for fiscal 2024 earnings.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the financial performance of Hormel Foods Corp. is not considered an extreme event as it’s a common occurrence in the stock market.
Move Size: The market move size mentioned in this article is a 4% fall in Hormel Foods Corp.’s stock price.
Sector: Food
Direction: Down
Magnitude: Medium
Affected Instruments: Stocks

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