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PVH Q1 Earnings on the Horizon: Here's What Lies Ahead for the Stock
PVH Corporation PVH is likely to post a year-over-year decline in its top and bottom lines when it reports first-quarter fiscal 2025 results on June 4, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.9 billion, indicating a drop of 0.8% from the prior-year the consensus estimate for earnings has moved up a penny to $2.23 per share, the metric indicates a decline of about 9% year over the last reported quarter, the company delivered an earnings surprise of 2.5%. It has a trailing four-quarter earnings surprise of 16.4%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.) PVH Corp's first-quarter fiscal 2025 results are likely to reflect the impacts of a challenging operating backdrop. Higher raw material costs and currency headwinds are likely to have been concerning. Increased investments in direct-to-consumer and international businesses are likely to have added to extra costs and hurt profitability. Elevated freight costs, due to disruptions in key sourcing locations, further add to the margin addition, the company has been witnessing sluggishness in its Heritage Brands segment for quite some time now, owing to the decline in the sale of the Heritage Brands women's intimates business. The wholesale channel remains under pressure, owing to a decline in sales of the Heritage Brands women's intimates business and PVH Corp.'s ongoing efforts to reduce sales in Europe. Aforesaid limitations are likely to have hurt PVH's sales and earnings performance during the to-be-reported its last earnings call, management had anticipated revenues to be flat to down 2% (flat to down 1% in constant currency) year over year for the fiscal first quarter. It had forecast the gross margin to contract roughly 250 basis points, due to higher freight costs and incremental discounts owing to the Calvin Klein product delays. PVH had then envisioned first-quarter operating margin to be 8-8.5%, down 150-200 basis points year over year. Interest expenses are anticipated to increase to $20 million compared with $18 million in the first quarter of Corp. had projected earnings per share, on a non-GAAP basis, in the range of $2.10-$2.25 for the impending quarter, lower than the $2.45 reported in the year-ago quarter. This view included an unfavorable currency impact of five cents a share. The Zacks Consensus Estimate for Calvin Klein and Heritage Brands Wholesale sales is currently pegged at $876 million and $43.2 million, respectively, indicating a year-over-year drop of 1.2% and 16.9%.While these factors raise concerns about the outcome, PVH Corp.'s PVH+ Plan appears encouraging. The plan mainly aims at accelerating growth by boosting its core strengths and connecting its key brands with the consumers. PVH aims to deliver top-tier products as it focuses on driving growth in its key categories. PVH plans to expand in global markets where its iconic brands already connect strongly with consumers. Gains from these efforts are likely to have provided some cushion to the quarterly performance. Our proven model does not conclusively predict an earnings beat for PVH Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. PVH Corp. price-eps-surprise | PVH Corp. Quote PVH Corp. has an Earnings ESP of -1.05% and a Zacks Rank of 2. You can uncover the best stocks before they're reported with our Earnings ESP Filter. From a valuation perspective, PVH Corp.'s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 6.47X, below the five-year median of 8.92X and the Textile - Apparel industry's average of 12.72X, the stock offers compelling value for investors seeking exposure to the recent market movements show that PVH's shares have gained 19.1% in the past three months against the industry's 6.5% decline. Here are some companies, which according to our model, have the right combination of elements to post an earnings beat this season:Dollar Tree DLTR currently has an Earnings ESP of +7.86% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports first-quarter fiscal 2025 results. The consensus mark for DLTR's quarterly revenues is pegged at $4.5 billion, which indicates a plunge of 40.5% from the figure reported in the prior-year quarter. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Dollar Tree's earnings has moved up a couple of cents to $1.20 per share in the past 30 days. The consensus estimate indicates a drop of 16.1% from the year-ago quarter's actual. DLTR delivered a negative trailing four-quarter earnings surprise of 8.4%, on General Corporation DG currently has an Earnings ESP of +3.15% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share has increased a penny in the past 30 days to $1.47, implying a 10.9% year-over-year decline. Dollar General's top line is expected to rise year over Zacks Consensus Estimate for quarterly revenues is pegged at $10.3 billion, which indicates an increase of 3.7% from the figure reported in the prior-year quarter. DG delivered a trailing four-quarter earnings surprise of 1.2%, on athletica LULU currently has an Earnings ESP of +1.82% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.4 billion, indicating 6.6% growth from the figure reported in the year-ago consensus estimate for LULU's earnings has been stable at $2.58 per share in the past 30 days. The consensus estimate indicates a drop of 1.6% from the year-ago quarter's actual. LULU has a trailing four-quarter earnings surprise of 6.6%, on average. 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 Dollar General Corporation (DG) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report PVH Corp. (PVH) : 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
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Ulta Beauty's Q1 Earnings & Sales Beat Estimates, FY25 View Raised
Ulta Beauty, Inc. ULTA reported solid first-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. Better-than-expected results prompted management to raise its full-year company reported first-quarter earnings per share of $6.70, beating the Zacks Consensus Estimate of $5.77. The bottom line increased from $6.47 in the year-ago period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote Net sales of this beauty product retailer increased 4.5% year over year to $2,848.4 million and surpassed the Zacks Consensus Estimate of $2,789 million. This growth was driven by higher comparable sales and contributions from new store openings, partially offset by a decline in other revenues. Comparable sales, which include sales from stores open for at least 14 months and e-commerce transactions, rose 2.9%. This growth was driven by a 2.3% rise in average ticket and a 0.6% increase in transaction volume. We expected comparable sales to decline 0.2%. Ulta Beauty's gross profit totaled $1,114.2 million, up 4.2% from $1,069.8 million. However, as a percentage of net sales, gross profit contracted to 39.1% from 39.2%. This decrease was due to deleverage in store and supply-chain fixed costs, along with lower other revenues, partially offset by reduced inventory shrinkage. We anticipated the gross margin to contract 10 general and administrative (SG&A) expenses increased 6.7% to $710.6 million from $665.9 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses increased to 24.9% from 24.4%. This increase was due to the deleveraging of store payroll and benefits, and store expenses, partially offset by the leverage of corporate income was $401.8 million compared with $400.9 million in the prior-year quarter. As a percentage of net sales, operating income was 14.1%, down from 14.7% in the year-ago period. We expected an operating margin of 12.4%. This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $454.6 million. Net merchandise inventories were $2.1 billion at the end of the reported quarter. Stockholders' equity at the end of the quarter was $2,430.3 million. Net cash provided by operating activities was $220 million for the 13 weeks ended May 3, company repurchased 986,733 shares for $358.7 million in the quarter. As of May 3, 2025, Ulta Beauty had $2.3 billion left under its $3 billion share buyback program announced in October 2024. Management still expects to buy back shares worth nearly $900 million in fiscal 2025. For the said period, capital expenditures are expected to be in the range of $425-$500 the reported quarter, the company opened six stores, remodeled four stores and relocated two stores. It ended the fiscal first quarter with 1,451 stores, totaling 15.2 million square feet. For fiscal 2025, ULTA still expects almost 60 net new stores, along with 40-45 store remodeling and relocation projects. Ulta Beauty now expects fiscal 2025 net sales in the range of $11.5-$11.7 billion compared with its prior outlook of $11.5-$11.6 billion. The company reported net sales of $11.3 billion in fiscal 2024. Comparable sales are now expected to be flat to up 1.5% year over year. Earlier, it anticipated comparable sales to be flat to up 1%.Management still expects an operating margin between 11.7% and 11.8% in fiscal 2025. Earnings per share are now envisioned to be in the range of $22.65-$23.20, revised from the earlier range of $22.50-$22.90. Ulta Beauty's earnings were $25.34 per share in fiscal 2024. The stock has gained 15.1% in the past three months compared with the industry's growth of 2.9%. Image Source: Zacks Investment Research Urban Outfitters, Inc. URBN offers lifestyle products and services. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Urban Outfitters' current fiscal-year earnings and sales indicates growth of 20.9% and 8%, respectively, from the year-ago period's reported figures. URBN delivered a trailing four-quarter average earnings surprise of 29%.Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy). GCO delivered a trailing four-quarter earnings surprise of 37.2%, on Zacks Consensus Estimate for Genesco's current fiscal-year earnings and sales indicates growth of 63.8% and 0.6%, respectively, from the year-ago period's reported Goose Holdings Inc. GOOS designs, manufactures and sells performance luxury apparel for men, women, youth, children and babies. It carries a Zacks Rank of 2 at present. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.The Zacks Consensus Estimate for Canada Goose's current fiscal-year earnings and sales implies a decline of 10% and 2.9%, respectively, from the year-ago actuals. 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 Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : 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
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IMVT Q4 Loss Narrower Than Expected, Stock Up, Pipeline in Focus
Immunovant, Inc. IMVT reported fourth-quarter fiscal 2025 net loss of 64 cents per share, narrower than the Zacks Consensus Estimate of a loss of 72 cents. The reported figure is wider than the year-ago quarter's loss of 52 cents per share. Currently, Immunovant does not have any approved products in its portfolio. As a result, it has yet to generate revenues. The stock gained 5.6% following the better-than-expected earnings results. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Year to date, IMVT shares have plunged 39.9% compared with the industry's 3.5% decline. Image Source: Zacks Investment Research Research and development expenses totaled $93.7 million, up 42% from the year-ago quarter's figure. The uptick can be attributed to activities related to the clinical studies of IMVT-1402, including contract manufacturing costs for drug substance and increased personnel-related expenses. General and administrative expenses amounted to $20.2 million, up 36% year over year. The rise was primarily due to an increase in personnel-related expenses, legal and other professional fees, along with information technology and market research costs. As of March 31, 2025, Immunovant had a cash balance of $714 million compared with $374.7 million as of Dec. 31, 2024. Immunovant expects the extended cash runway to fund operations through 2027. Immunovant reported a loss of $2.73 per share for fiscal 2025, which matched the Zacks Consensus Estimate. The company had incurred a loss of $1.88 per share in the previous fiscal year. Immunovant has designated IMVT-1402, a next-generation FcRn inhibitor, as its lead asset going forward, given its broad potential across multiple indications. The company is on track to initiate clinical studies in a total of 10 indications for IMVT-1402 by March 31, 2026. The company expects to achieve financial efficiencies in its IMVT-1402 development program by leveraging the data already available from batoclimab studies. Currently, Immunovant is developing IMVT-1402 for six announced indications: Graves' disease (GD), difficult-to-treat rheumatoid arthritis (D2T RA), myasthenia gravis (MG), chronic inflammatory demyelinating polyneuropathy (CIDP), Sjögren's disease (SjD) and cutaneous lupus erythematosus (CLE). Potentially registrational studies for IMVT-1402 in both MG and CIDP are currently enrolling patients. The company has also initiated its first potentially registrational study of IMVT-1402 for adult patients with GD who are hyperthyroid despite antithyroid drug treatment. It is looking to initiate a second potentially registrational study of IMVT-1402 for GD in the summer of 2025. In March, Immunovant initiated a potentially registrational study of IMVT-1402 (600 mg) in adult patients with ACPA-positive D2T RA, aiming to achieve deeper ACPA reduction for improved clinical outcomes. It has also initiated an early-stage proof-of-concept study of the candidate for CLE. A potentially registrational study to evaluate IMVT-1402 for SjD is also expected to begin in the summer of 2025. Immunovant is evaluating its second candidate, batoclimab, in ongoing mid-late-stage studies for two different autoimmune indications, GD and thyroid eye disease (TED). The company is gearing up to report new batoclimab proof-of-concept data for GD, including six-month treatment-free remission results, in summer 2025 to highlight IMVT-1402's potential. Top-line data from IMVT's late-stage TED study of batoclimab is expected to be shared in the second half of 2025, based on which IMVT will decide whether to file for regulatory approval. Immunovant, Inc. price-consensus-eps-surprise-chart | Immunovant, Inc. Quote Immunovant currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Bayer BAYRY, Lexicon Pharmaceuticals LXRX and Amarin AMRN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the past 60 days, estimates for Bayer's earnings per share have increased from $1.19 to $1.25 for 2025. During the same time, earnings per share have increased from $1.28 to $1.31 for 2026. Year to date, shares of Bayer have gained 44.7%. BAYRY's earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%. In the past 60 days, estimates for Lexicon's loss per share have narrowed from 37 cents to 32 cents for 2025. During the same time, loss per share estimates for 2026 have narrowed from 35 cents to 31 cents. Year to date, shares of LXRX have lost 10.7%. LXRX's earnings beat estimates in three of the trailing four quarters and missed the same on the remaining occasion, delivering an average surprise of 11.97%. In the past 60 days, estimates for Amarin's loss per share for 2025 have narrowed from $5.33 to $3.48. During the same time, loss per share estimates for 2026 have narrowed from $4.13 to $2.67. Year to date, shares of AMRN have gained 20.4%. AMRN's earnings beat estimates in two of the trailing four quarters, matched once and missed the same on the remaining occasion, delivering an average surprise of 29.11%. 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 Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report Lexicon Pharmaceuticals, Inc. (LXRX) : Free Stock Analysis Report Amarin Corporation PLC (AMRN) : Free Stock Analysis Report Immunovant, Inc. (IMVT) : 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
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BURL's Q1 Earnings Top Estimates, Comparable Store Sales Flat Y/Y
Burlington Stores, Inc. BURL has reported first-quarter fiscal 2025 results, wherein revenues and earnings grew year over year. While the top line missed the Zacks Consensus Estimate, the bottom line beat. Burlington Stores achieved higher sales year over year in the first quarter, driven by effective merchandising, supply-chain improvements and store-expansion efforts. Earnings exceeded expectations, supported by higher sales, margins and operational efficiencies. In the past three months, this Zacks Rank #3 (Hold) company has lost 3.6% compared with the industry's 2% decline. Burlington Stores reported adjusted earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.42. The bottom line rose 18.5% from $1.35 per share in the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Total revenues of $2,504 million jumped 6% from the prior-year quarter but came below the Zacks Consensus Estimate of $2,534 million. Net sales climbed 6.1% to $2,500.1 million while other revenues fell 7.1% to $3.9 million. The company's comparable store sales remained flat year over year. Our model had anticipated flat comparable store sales for the fiscal first quarter. Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote The gross margin was 43.8%, up 30 basis points (bps) from first-quarter fiscal 2024. This also surpassed our estimate of a gross margin of 43.5%. The merchandise margin increased 20 bps and freight expenses, as a percentage of net sales, improved 10 bps year over selling, general and administrative (SG&A) expenses rose 4.8% year over year to $669.5 million. Adjusted SG&A expenses, as a percentage of net sales, were 26.8%, down 30 bps from first-quarter fiscal 2024. We estimated adjusted SG&A expenses, as a percentage of net sales, to be 26.7%. Product sourcing costs were $197 million, up from $183 million in the year-ago quarter. Such costs comprise the processing goods costs via its supply chain and buying EBITDA increased 12.6% from the first quarter of fiscal 2024 to $238.1 million, excluding $6 million of expenses in each period related to the bankruptcy acquired leases. Adjusted EBIT was $146.3 million, up 13.1% from the year-ago quarter. The company ended the reported quarter with cash and cash equivalents of $371.1 million, long-term debt of $1.64 billion and stockholders' equity of $1.35 billion. BURL exited the fiscal first quarter with $1.12 billion of liquidity, including $371 million of unrestricted cash and $748 million available under its ABL Stores ended the quarter with $1.65 billion of outstanding total debt, comprising $1.24 billion under its term-loan facility, $297 million of convertible notes and $100 million of borrowings under its ABL company bought back 445,285 shares for $105 million under its share repurchase plan in the fiscal first quarter. As of May 3, 2025, BURL had $158 million remaining under its existing share repurchase authorization. On May 20, 2025, the company's board authorized repurchasing up to an additional $500 million of its common stock, which will be executed through May 2027. Management cited that tariffs are likely to put immense pressure on the company's merchandise margin. However, it is confident about tackling this pressure if tariffs do not rise from the existing levels. BURL is on track to accomplish its original guidance. Also, the off-price model is well-positioned to navigate a dynamic the second quarter of fiscal 2025, the company expects total sales to grow in the band of 5-7%, with comparable store sales expected to remain between flat and up 2% compared with the second quarter of fiscal 2024. The adjusted EBIT margin is projected in the range of down 30 bps to flat year over year, excluding about $11 million of expected expenses related to bankruptcy-acquired leases in the fiscal second quarter. Favorable timing of expenses is likely to adversely impact adjusted earnings per share (EPS) are expected to be between $1.20 and $1.30 compared with $1.24 earned in the prior-year quarter. The EPS view excludes $8 million, net of tax, of planned expenses connected with bankruptcy-acquired leases in the second quarter of fiscal 2025. Management expects an effective tax rate of almost 24%. For fiscal 2025, the company continues to expect total sales to increase in the band of 6-8% year over year. This projection assumes comparable store sales will rise between 0% and 2%. BURL recorded sales growth of 11% and comparable store sales increase of 4% in fiscal 2024. Capital expenditures, net of landlord allowances, are expected to be approximately $950 million. Depreciation and amortization are likely to be $385 million, while net interest expenses are projected to be $57 million. Management forecasts an adjusted effective tax rate of about 25% for the current fiscal year. The company plans to open around 100 net stores. The adjusted EBIT margin is expected to improve 0-30 basis points from the previous fiscal year, excluding $33 million of planned costs with respect to the bankruptcy-acquired leases in fiscal 2025. Adjusted EPS is still projected between $8.70 and $9.30, higher than $8.35 earned in the prior fiscal year. This excludes $25 million, net of tax, of expected expenses related to bankruptcy-acquired leases in fiscal 2025 and assumes a count of roughly 64 million shares. Some better-ranked stocks are Urban Outfitters URBN, Canada Goose GOOS and Genesco Outfitters, a lifestyle specialty retailer offering apparel and accessories, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Urban Outfitters' current financial-year's earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at Zacks Consensus Estimate for Canada Goose's current financial-year's earnings and sales implies growth of 10% and 2.9%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.Genesco, a branded company that sells footwear and accessories, currently has a Zacks Rank of Zacks Consensus Estimate for GCO's current financial-year's earnings and sales implies growth of 63.8% and 0.6%, respectively, from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 37.2%. 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 Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Burlington Stores, Inc. (BURL) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : 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
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Hormel Foods Q2 Earnings Meet Estimates, Sales Increase Y/Y
Hormel Foods Corporation HRL reported second-quarter fiscal 2025 results. The bottom line declined year over year and met the Zacks Consensus Estimate, while the top line improved and missed the same. Hormel Foods posted adjusted earnings of 35 cents per share, which were in line with the Zacks Consensus Estimate. The bottom line decreased from 38 cents reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote Net sales of $2,898.8 million increased 0.4% from $2,887.4 million in the year-ago quarter. However, the metric missed the consensus mark of $2,905 million. Volumes declined 5.7% in the reported quarter. Hormel Foods' gross profit was $484.4 million, down from $503.8 million reported in the year-ago selling, general and administrative expenses were $237.7 million for the quarter, a decrease from $244.9 million in the year-ago operating income was $264.9 million, a decrease from $275.9 million in the same quarter last year. Adjusted operating margin was 9.1%, down from 9.6% reported in the year-ago quarter. Net sales in the Retail unit decreased 0.3% year over year to $1,783.8 million, with volumes falling 6.6%. High single-digit growth in Mexican portfolio and value-added turkey products was largely offset by the timing of promotions. Approximately two-thirds of the Retail segment's volume decline was attributed to lower commodity shipments and contract manufacturing. Flagship and emerging brands maintained leadership in their respective categories. Notably, the Planters brand outperformed expectations in both volume and net sales, while demand for Jennie-O lean ground turkey remained strong. Segment profit increased 3.6%, driven by operational efficiencies from the T&M initiative and lower selling, general and administrative sales in the Foodservice segment increased 0.5% to $936.4 million, with organic net sales rising 4% and volumes down 7.3%. Growth in organic net sales was broad-based, driven by strong performance in the customized solutions business and the turkey portfolio. Branded products, including Jennie-O, Hormel Fire Braised meats and Café H globally inspired proteins, delivered another solid quarter of volume and net sales growth. Despite softness across the industry, several categories posted volume gains, which were more than offset by a reduction in commodity profit declined 5.8%, as increased net sales were outweighed by margin pressures, particularly within non-core businesses. The Foodservice segment continued to benefit from an extensive range of solutions-based products, a strong direct-selling organization and a diversified channel sales in the International unit increased 7% year over year to $178.5 million, whereas volumes increased 8.9%. Growth was driven by double-digit volume and net sales increases in exports, as well as continued momentum in China's market. Export growth was led by strong shipments of refrigerated products, particularly bacon and pepperoni. In China, both the retail and foodservice channels contributed to performance, supported by successful new product profit decreased 20.7%, primarily due to an unfavorable shift in export customer mix and continued softness in Brazil. This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $669.7 million and total long-term debt (excluding current maturities) of $2,850.7 million. In the fiscal second quarter, cash flow from operations was $56.4 Foods prioritizes returning capital to its shareholders. The company returned nearly $159 million to its shareholders via dividends. Image Source: Zacks Investment Research Hormel Foods now expects fiscal 2025 net sales to be between $12 billion and $12.2 billion compared with its prior outlook of $11.9 billion to $12.2 billion. Organic net sales growth is now projected at 2% to 3%, up from the previous range of 1% to 3%.The company now anticipates operating income to be between $1,118 million and $1,185 million, while adjusted operating income is expected to be in the range of $1,175 million to $1,248 million in fiscal 2025. Earlier, it anticipated operating income to be between $1,118 million and $1,212 billion, while adjusted operating income was expected to be in the range of $1,175 million to $1,275 now projects full-year diluted earnings per share (EPS) to be between $1.49 and $1.59, narrowed from its previous range of $1.49 to $1.63. Adjusted EPS is expected to be between $1.58 and $1.68, revised from the earlier range of $1.58 to $ Foods targets capital expenditures of $275 million to $300 million, and expects depreciation and amortization expenses of approximately $265 million in fiscal HRL stock has risen 5.9% in the past three months against the industry's decline of 1.8%. Nomad Foods Limited NOMD manufactures, markets and distributes a range of frozen food products in the United Kingdom and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 4.6% and 7.3%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on S.A. BRFS raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on average. The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings implies growth of 0.3% and 11.1%, respectively, from the prior-year Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.7% and 65.8%, respectively, from the year-ago figures. 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 BRF S.A. (BRFS) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : 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
