Latest news with #HRL
Yahoo
9 hours ago
- Business
- Yahoo
1 Consumer Stock to Own for Decades and 2 to Keep Off Your Radar
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn't played its shielding role over the past six months as it tumbled 14.1%. This drop was much worse than the S&P 500's 1.8% decline. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two that may face trouble. Market Cap: $16.88 billion Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads. Why Do We Think Twice About HRL? Shrinking unit sales over the past two years show it's struggled to move its products and had to rely on price increases Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 16.7% that must be offset through higher volumes Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines Hormel Foods's stock price of $30.70 implies a valuation ratio of 17.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn't pass our bar. Market Cap: $1.59 billion Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables. Why Do We Steer Clear of FDP? Sales were flat over the last three years, indicating it's failed to expand its business Gross margin of 8.2% is an output of its commoditized products Low returns on capital reflect management's struggle to allocate funds effectively Fresh Del Monte Produce is trading at $33.13 per share, or 8.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP. Market Cap: $7.89 billion Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Why Are We Bullish on BRBR? Stellar 20.8% growth in unit sales over the past two years demonstrates the high demand for its products Earnings growth has trumped its peers over the last three years as its EPS has compounded at 28% annually ROIC punches in at 48.9%, illustrating management's expertise in identifying profitable investments At $62.15 per share, BellRing Brands trades at 26.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
6 days ago
- Business
- Yahoo
Hormel Foods Corp (HRL) Q2 2025 Earnings Call Highlights: Solid Organic Growth Amidst Commodity ...
Net Sales: $2.9 billion, a 1% organic increase over last year. Gross Profit Margin: 16.7%, impacted by higher commodity input costs. SG&A Expenses: Decreased by 50 basis points. Diluted Earnings Per Share: $0.33; Adjusted diluted earnings per share: $0.35. Cash Flow from Operations: $56 million. Capital Expenditures: $75 million, with a full-year expectation of $275 million to $300 million. Debt: $2.9 billion, at the low end of the net debt-to-EBITDA target. Dividend: 387th consecutive quarterly dividend paid. Full-Year Net Sales Growth Outlook: 2% to 3% increase expected. Full-Year Adjusted EPS Outlook: $1.58 to $1.68. Warning! GuruFocus has detected 6 Warning Signs with HRL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hormel Foods Corp (NYSE:HRL) achieved solid organic top line growth and delivered second quarter results in line with expectations. The Applegate brand experienced incredible sales growth, outpacing the total edible category and expanding its reach with new product lines. Jennie-O lean ground turkey continues to perform well, aligning with consumer preferences for lean, high-protein foods. The Mexican foods portfolio saw success with Herdez Salsa and refrigerated guacamole, experiencing double-digit consumption growth. The International segment delivered strong top line growth, driven by double-digit volume and net sales growth in exports and robust growth in China. Higher commodity input costs impacted gross profit margins, which were at 16.7% for the quarter. Interest and investment income decreased due to lower cash balances and performance from the rabbi trust. The macro environment remains dynamic, with potential impacts from tariffs and lower investment income anticipated in the second half. The company faced challenges with inventory management, necessitating strategic builds for summer demand. Foodservice margins have been stagnant, requiring continued efforts to outperform the broader market. Q: Can you elaborate on the revised operating income outlook for the year and how you plan to achieve it? A: James Snee, CEO, explained that Hormel Foods is well-positioned for a strong second half, driven by the recovery of the Planters brand, positive momentum in the turkey portfolio, and strong performance in value-added businesses. The Transform and Modernize (T&M) initiative is on track, contributing to the expected results. Q: What is the expected cadence for turkey performance in the second half of the year? A: Jacinth Smiley, CFO, noted that strong top-line growth is expected in Q3, with low double-digit EPS growth. James Snee added that the turkey supply is tightening, but Hormel is well-positioned with a focus on value-added turkey products, expecting most upside during the fresh season closer to Thanksgiving. Q: Can you provide more details on the expected margin improvements in the second half? A: Jacinth Smiley stated that margin expansion is expected, driven by turkey, Planters, and value-added businesses, along with benefits from the T&M initiative. Sequential margin improvement was already seen in Q2, and this trend is expected to continue. Q: How is Hormel Foods planning to achieve mid-single-digit growth in Foodservice despite industry challenges? A: James Snee highlighted Hormel's historical outperformance in the Foodservice sector, supported by a strong pipeline of innovation, favorable year-over-year comps, and a solution-based portfolio that meets diverse channel needs. Q: What are the key initiatives under the Transform and Modernize (T&M) initiative, and how are they progressing? A: Jacinth Smiley mentioned that 66 projects were executed this quarter under T&M, including opening a new distribution center in Memphis and closing a dry sausage facility in California. The initiative focuses on improving supply chain efficiency and planning, with a robust pipeline of projects to meet savings targets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
7 days ago
- Business
- Entrepreneur
Hormel Stock Near Lows, But Tariff Relief Could Boost Outlook
Hormel stock is trading near 10-year lows, but an attractive valuation and recent analysts' upgrades suggest the stock may offer value if tariffs are suspended This story originally appeared on MarketBeat [content-module:CompanyOverview|NYSE:HRL] Despite its status as a dividend king, many investors weren't expecting much from Hormel Foods Corp. (NYSE: HRL) in its second-quarter earnings report for the 2025 fiscal year. The company didn't disappoint, but mixed results sent the stock down 2.8% immediately following the report. Revenue of $2.90 billion was a slight miss from the $2.92 billion expected. However, adjusted earnings per share (EPS) of 35 cents were in line with expectations. More importantly, revenue was up slightly year-over-year (YOY). The company delivered $2.89 billion in the second quarter of its 2024 fiscal year. However, earnings per share (EPS) were down about 10% YOY. That speaks directly to tariff pressures that are impacting many consumer staples stocks. Add to that a recall on its beef stew and the announcement of a transition at the executive level, and there are a lot of reasons to stay away from the stock. But analysts have been viewing things differently. That, combined with an attractive valuation, may make HRL stock worth a closer look. Tariff Concerns Weigh on Earnings Many companies are getting more precise in defining how tariffs impact their companies. For Hormel, that means using the phrase 'supply chain issues.' The company isn't wrong. The Trump administration tariffs include increased tariffs on processed meats, certain vegetables and packaging materials being imported from China, Canada, and Mexico. The tariffs impact Hormel products such as Spam and other pre-packaged meals that rely on these imported ingredients. Those effects were reflected in the sector profits across the company's verticals. Hormel's retail sector posted a higher sector profit, but it was offset by declines in sector profit in its Foodservice and International verticals. However, the company suggests that the worst may be behind it. That's because it effectively maintained its full-year guidance. The current projections are for net sales between $12 and $12.2 billion, with adjusted earnings per share coming in between $1.58 and $1.68. The high end has narrowed from $1.72 in the prior quarter. It's also important to keep in mind that the earnings report was already put together before the court ruling to strike down the Trump administration's tariff plans. The final result is likely to take months to work out, but the return to 2024 levels may benefit Hormel in the current quarter. A Change in the Marketing Ranks About a week before the earnings report, Hormel announced two significant changes in its executive ranks. Scott Aakre, the current group vice president and chief marketing officer (CMO), announced his retirement at the end of the current fiscal year. Aakre will continue to serve on the company's board of directors. Hormel also announced that Jeff Baker, the current group vice president of retail marketing for value-added meats, will become the company's new group vice president for retail marketing starting in fiscal 2026. Baker will assume some of the responsibilities currently under Aakre. Analysts Issued Upgrades Ahead of Earnings [content-module:Forecast|NYSE:HRL] Despite the tariff overhang, analysts have been bullish on HRL stock heading into earnings. Since April 15, the Hormel analyst forecasts on MarketBeat show three analysts have upgraded the stock. Those upgrades included BNP Paribas, which took the stock from a Strong Sell to a Hold. This is likely a case of a stock being different from a company. Analysts aren't ignoring the uncertainty that Hormel faces from tariffs and a consumer that's under pressure. The stock is down 4.4% in 2025 and over 12% in the last 12 months. However, it must be noted that HRL stock is now trading near 10-year lows. That's likely what analysts are looking at with a stock that's trading at a forward price-to-earnings (P/E) ratio of around 18x. That's a slight discount to itself and the consumer staples sector. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
7 days ago
- Business
- Yahoo
Hormel (HRL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Hormel Foods (HRL) reported $2.9 billion in revenue for the quarter ended April 2025, representing a year-over-year increase of 0.4%. EPS of $0.35 for the same period compares to $0.38 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.9 billion, representing a surprise of -0.20%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Hormel performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Retail: $1.78 billion versus $1.77 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.3% change. Net Sales- International: $178.53 million compared to the $178.43 million average estimate based on three analysts. The reported number represents a change of +7% year over year. Net Sales- Foodservice: $936.44 million versus $953.29 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +0.5% change. Segment Profit- Foodservice: $140.63 million versus the two-analyst average estimate of $147.62 million. Segment Profit- International: $18.41 million versus $23.85 million estimated by two analysts on average. Segment Profit- Retail: $137.14 million versus $112.33 million estimated by two analysts on average. View all Key Company Metrics for Hormel here>>>Shares of Hormel have returned +0.5% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hormel Foods Corporation (HRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
California freight forwarder charged with smuggling billions in goods
Executives at a Los Angeles freight forwarding company smuggled billions of dollars in goods into Mexico from the U.S. for over a decade in a lucrative scheme involving drug cartels and corrupt customs agents, federal prosecutors say. Ralph Olarte, 55, and Humberto Lopez Belmonte, 53, used 'fraudulent documents, shell companies, bribes to public officials, and kickbacks to Mexican cartels' in the scheme, which lasted from at least 2013 to 2024, according to the 22-count indictment against Olarte, Lopez and their company, Sport LA Inc., in the U.S. District Court for the Central District of California. Olarte, a U.S. citizen, and Lopez, a citizen of Mexico, allegedly hid the nature of the goods as well as the identities of the actual recipients from U.S. Customs and Border Protection. Among items originating in the U.S. and exported to Mexico or funneled through the U.S. from other countries and then to Mexico were contraband including counterfeit cell phone batteries and medical devices, as well as goods that required licenses, such as handguns, ammunition, electronic cigarettes and marijuana, the indictment states. Mexican shell companies received the goods. The defendants avoided paying hundreds of millions of dollars in duties owed to the Mexican government by bribing Mexican customs officials, according to a statement from the U.S. Attorney's used WhatsApp to direct truck drivers into specific Mexican customs lanes where officials who had been bribed were assigned. The agents permitted the trucks to enter Mexico without paying duties, the indictment alleges. The defendants then smuggled large amounts of cash from payment for the goods into the U.S., which they laundered through the Mexican shell companies and back to the shipping companies they controlled. 'Throughout the conspiracy, defendants OLARTE and LOPEZ wired, and caused to be wired, tens of millions of dollars from the shell consignee accounts to the HRL defendants,' according to the indictment. Both men allegedly received millions of dollars in the scheme. Sport LA Inc. was a bonded freight carrier that did business as HRL, H&R Logistics and under other names. Lopez was CEO and secretary, and Olarte was chief financial officer. Bonded carriers are permitted to ship goods through the United States to other defendants also facilitated kickbacks to the Jalisco New Generation Cartel and other cartels, which allowed them to continue operations, and used contacts with law enforcement in Mexico to ensure the goods reached their intended destinations, prosecutors say. The charges range from conspiracy to commit money laundering to smuggling goods from the United States to submitting false and misleading export information. Lopez pleaded not guilty on Tuesday, the day he was arrested, the U.S. Attorney's Office said. A July 21 trial date was scheduled, and he was ordered released on a $100,000 bond. It was not immediately clear whether Olarte, who was also arrested on Tuesday, had entered a plea. If convicted, Olarte and Lopez face up to 20 years in federal prison for each count related to wire fraud and money laundering, up to five years for each count related to smuggling and making false statements, and up to two years for each count of knowingly submitting false and misleading export information. Mark Werksman, Lopez's lawyer, told Courthouse News Service that Lopez denies the accusations. 'We look forward to defending against these charges in court, and we're confident that a jury will agree that Mr. Lopez, his co-workers and his company did nothing wrong,' Werksman said. Homeland Security Investigations, CBP, IRS Criminal Investigation and the Drug Enforcement Administration are involved in the investigation. Related:Armenian crime rings charged with attempted murder, $83M Amazon cargo theft The post California freight forwarder charged with smuggling billions in goods appeared first on FreightWaves.
