Hormel Foods (HRL) Q1 Earnings Lag Estimates, Sales Up Y/Y
Zacks Investment Research | Feb 19, 2020 10:17PM ET
Hormel Foods Corporation (NYSE:HRL) has posted first-quarter fiscal 2020 results, wherein both top and bottom lines increased year over year. Its sales surpassed the Zacks Consensus Estimate, while earnings missed the same.
Quarter in Detail
Quarterly earnings of 45 cents per share lagged the Zacks Consensus Estimate of 46 cents. Nevertheless, the bottom line increased 2% year over year. This can be attributed to higher sales and reduced effective tax rate.
Net sales were $2,384.4 million, which surpassed the Zacks Consensus Estimate of $2,361 million. Moreover, the top line increased 1% year over year, owing to rise in sales at International, Jennie-O Turkey Store and Refrigerated Foods units. Notably, organic sales grew 4% year over year.
Hormel Foods' volumes witnessed a 1% drop, while rose 2% on an organic basis.
Selling, general and administrative expenses increased nearly 1% to $195.5 million. Operating margin contracted 120 bps to 11.8%.
Hormel Foods Corporation Price, Consensus and EPS Surprise
industry ’s decline of 1.3%.
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