Market Overview

Earnings Preview for Hormel Foods

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On Tuesday, November 24, Hormel Foods (NYSE: HRL) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Hormel Foods will report earnings of $0.44 per share on revenue of $2.59 billion. In the same quarter last year, Hormel Foods reported EPS of $0.47 on revenue of $2.50 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 6.38%. Revenue would be up 3.52% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.34 0.42 0.45 0.46
EPS Actual 0.37 0.42 0.45 0.47
Revenue Estimate 2.37 B 2.37 B 2.37 B 2.51 B
Revenue Actual 2.38 B 2.42 B 2.38 B 2.50 B

Stock Performance

Shares of Hormel Foods were trading at $50.14 as of November 20. Over the last 52-week period, shares are up 12.71%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hormel Foods is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: Earnings