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Sector Update: Consumer Stocks Mixed; Hormel Climbs to Record High After Q3 Results Top Street Views

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Consumer stocks were mixed in Thursday afternoon trade with shares of consumer staples companies in the S&P 500 adding about 0.3%. Shares of consumer discretionary firms in the S&P 500 were down about 0.1%.

In company news, Hormel Foods Corp ( HRL ) rallied to a new, high Thursday after the packaged meat processor reported adjusted earnings and sales during the three months ended July 27 that beat analyst expectations.

HRL shares recently were up nearly 5% at $50.23 apiece, earlier climbing to a record high of $50.73 a share. Over the past 12 months, the stock has risen almost 22%.

The company today posted fiscal Q3 net earnings of $138.0 million, or $0.51 per share, up 21% from its $113.6 million profit during the year-ago period and beating the Capital IQ consensus by $0.03 per share.

Net sales for the quarter rose 6% year over year to $2.3 billion, edging out analyst expectations by around $70 million.

For the current quarter ending in October, the company said it is anticipating strong performances by its Skippy peanut butter and its snack wrap product lines during the upcoming back-to-school season. It also is expecting a strong finish to the fiscal year by its Jennie-O turkey store segment along with gains in its grains and specialty foods segments.

Overall, HRL reiterated its prior guidance looking for FY 2014 adjusted earnings in a range of $2.17 to $2.27 per share. The Street is looking for a $2.18 per share profit during the current fiscal year.

In other sector news,

(+) CRMT, (+18.1%) Fiscal Q1 net income of $0.79 per share beats the Capital IQ consensus by $0.19 per share. Revenue climbs 3.9% year over year to $127.38 mln, topping the Street view by around $11.99 mln.

(-) PLKI, (-2.6%) Adjusted Q2 earnings of $0.39 per share match analyst estimates. Revenue rises 12.1% year over year to $53.7 mln, lagging Street view by $1.1 mln. FY14 EPS outlook of $1.58 to $1.63 in-line with $1.63 per share consensus. Sees 3% to 4% same-store growth.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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