Yahoo Finance Hormel Foods (HRL) to Report Q4 Earnings: What to Expect?
Meat products company Hormel Foods Corporation HRL is scheduled to report fourth-quarter fiscal 2015 (ended Oct 2015) results on Nov 24, 2015 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 68 cents per share.
In the trailing four quarters, Hormel Foods reported better-than-expected results in three, and lower-than-expected result in one quarter. Average earnings surprise was a positive 4.03%. Last quarter, the company’s earnings of 56 cents per share surpassed the Zacks Consensus Estimate of 55 cents. Let us see how things have been shaping up for this quarter.
Factors to Influence Q4 Results
Hormel Foods has solid long-term prospects backed by high-quality products as well as its innovative efforts to enhance the portfolio. Last quarter, the company’s megamex food products, chili and skippy peanut butter, guacamole dips and muscle milk products performed well, and are anticipated to keep up the trend in the quarters ahead too. Also, AUSTIN BLUES, the company’s newly launched category of barbecue meats, will likely support sales growth in the Foodservice channel, going forward.
In addition, Hormel Foods has implemented certain cost-saving measures to lower expenses. The company believes that increased demand for foodservice & retail value-added products and lower input prices would further boost revenue and margin growth, going ahead.
Moreover, Hormel Foods is resorting to inorganic means, like acquisitions, to enhance its top line performance in the upcoming quarters. Of many, the acquisition of Applegate is expected to help the company tap the growing market demand for organic and natural frozen food products among American consumers and augment its sales in U.S.
Earnings Whispers
Our proven model does not conclusively show that Hormel Foods is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Expected Surprise Prediction or ESP of Hormel Foods is currently 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 68 cents per share.
Zacks Rank: Hormel Foods currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies in the sector that you may want to consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter:
Primo Water Corporation PRMW, with an Earnings ESP of +50% and a Zacks Rank #1.
Snyder's-Lance, Inc. LNCE, with an Earnings ESP of +2.50% and a Zacks Rank #3.
SunOpta Inc. STKL, with an Earnings ESP of +33.33% and a Zacks Rank #3.
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HORMEL FOODS CP (HRL): Free Stock Analysis Report
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PRIMO WATER CP (PRMW): Free Stock Analysis Report
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