Branded foods and meat manufacturer,
Hormel Foods Corporation
), attained a 52-week high of $39.51 on Mar 13, as it gained
momentum after increasing its earnings outlook for fiscal 2013,
despite sluggish first-quarter results announced on Feb 21, 2013.
Hormel has generated a return of approximately 26.3%
This Zacks Rank #2 (Buy) company's long-term estimated
earnings per share growth rate is 9.00%. Average volume of shares
traded over the last three months came in at approximately
Fiscal 2013 Guidance Upped
Hormel raised its guidance for fiscal 2013, despite announcing
sluggish first-quarter results in late February.
The company's earnings per share of 48 cents were in line with
the year-ago earnings, while it lagged the Zacks Consensus
Estimate by a cent. Also, sales for the quarter improved year
over year but missed the Zacks Consensus Estimate. An increase in
revenues across most of its segments was offset by an escalation
in costs of raw materials, which pulled down the earnings.
However, management raised its earnings estimates for fiscal
2013 on the back of increased contribution from most of its
segments and the company's cost control initiatives. Earnings are
now expected to range within $1.93-$2.03, up from the previously
announced range of $1.90-$2.00.
Management expects Grocery Products, Specialty Foods and All
Other segments to continue prospering in the coming quarters.
However, Refrigerated Foods segment, which is going through
difficult times at present, is expected to improve in the future
while Jennie-O Turkey will continue to face headwinds.
Estimates were mostly revised upward for fiscal 2013 and 2014
after the guidance increase. The Zacks Consensus Estimate for
fiscal 2013 rose almost 0.5% to $1.98 while that for fiscal 2014
increased 2.3% to $2.23, over the past 30 days.
Other Stocks to Consider
Other stocks worth a look in the meat products industry are
Hillshire Brands Company
), holding a Zacks Rank #1 (Strong Buy), along with
Pilgrim's Pride Corporation
Tyson Foods Inc.
), both of which hold a Zacks Rank #2 (Buy).
HORMEL FOODS CP (HRL): Free Stock Analysis
HILLSHIRE BRAND (HSH): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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