Hormel Foods CorporationHRL
▼ NegativeDemandrelevance
Company cut full-year sales forecast and missed revenue estimates due to pressured consumer demand and volume declines.
Impact on stocks 1
Consumer Staples
Hormel Foods CorporationHormel Foods shares fell 9.3% in afternoon trading after the company cut its full-year sales forecast and reported second-quarter revenue that missed Wall Street expectations due to pressured consumer demand. The packaged foods company reported a 2.4% year-over-year drop in second-quarter revenue to $2.96 billion, falling short of the $3.04 billion estimate, as total sales volumes declined 7.4%. Sales in its largest segment, retail, fell 4% on a 9% volume decline amid softer demand for private-label snack nuts. Hormel lowered its full-year net sales guidance to between $12.1 billion and $12.2 billion, down from its prior range of $12.2 billion to $12.5 billion, and narrowed its expected full-year organic sales growth to 1% to 2%. While quarterly adjusted earnings of $0.37 per share topped analyst projections of $0.35, the reduced outlook and persistent consumer headwinds weighed on sentiment.
Hormel Foods CorporationCompany cut full-year sales forecast and missed revenue estimates due to pressured consumer demand and volume declines.