Hormel beats profit forecasts, raises outlook, shares jump
AUSTIN, Minn. (AP) — Hormel Foods Corp. reported stronger-than-expected quarterly profit and raised its 2016 outlook, sending its shares sharply higher on Tuesday.
The Austin, Minnesota-based company reported fiscal first-quarter earnings of $235.1 million, or 43 cents per share. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 37 cents per share.
The maker of Spam canned ham, Dinty Moore stew and other foods posted revenue of $2.29 billion in the period.
A year ago the company posted earnings of $171.7 million on revenue of $2.4 billion.
Hormel said it now expects its full-year 2016 earnings to be $1.50 to $1.56 per share, up from a previous forecast of $1.43 to $1.48 a share. Analysts had been expecting $1.48 a share, according to FactSet.
Its stock rose 2.94, or 7 percent, to close Tuesday at $44.44
Hormel shares are up more than 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined more than 7 percent. The stock has gained 59.5 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HRL at http://www.zacks.com/ap/HRL
Keywords: Hormel Foods, Earnings Report
This story has been corrected to show that Hormel’s shares are up more than 12 percent since the beginning of the year, not more than doubled. The stock has risen 59.5 percent in the last 12 months, not nearly tripled. The Standard & Poor’s 500 index is down more than 7 percent for the year, not almost 2 percent.