Hormel (NYSE:HRL) noticed its stock slid Wednesday after reporting a mixed quarter. Earnings beat estimates, but sales came up short of Wall Street forecasts. Hormel issued a weaker than expected outlook and said it expected a continued volatile and high-cost environment.
The food company reported net sales of $3.3 billion, down 5%; organic net sales were up 2%, excluding the impact of an additional week last year. Operating income proved $367 million , up 3% Pre-tax earnings were
$357 million, up 1%. Cash flow from operations of $372 million, down 34%
Said CEO Jim Snee, “We achieved all-time record sales and double-digit profit growth in fiscal 2022," said Jim Snee, chairman of the board, president and chief executive officer. "In addition to delivering year-over-year growth, our team successfully integrated the Planters ® business, made progress on our six strategic priorities, showed tremendous resolve in overcoming a challenging operating environment, and laid the groundwork for the next step in our evolution as a global branded company, the Go Forward initiative."
Snee added, “We believe higher levels of brand investment, increased production capacity and our initial GoFWD actions further support this expectation. We anticipate earnings growth to be driven by our Foodservice and International segments, and improvements across the supply chain."
HRL was drubbed $1.11, or 2.3%, soon after Wednesday’s open to $47.08.
