Hormel Foods (HRL, $47.36) misses fiscal Q3 earnings expectations, while beating revenue estimate
Hormel Foods posted its fiscal third-quarter earnings that missed analyst’ expectations, even as revenue surpassed estimates.
The consumer food company’s sales in the quarter grew +6% from the year-ago period to $3.03 billion, above the consensus of $2.98 billion (as reported in Benzinga). Earnings per share of $0.40 , however, came in below the analyst consensus of $0.41.
Net sales for Refrigerated Foods rose +2% year-over-year and that for Grocery Products climbed +25%, while Jennie-O Turkey Store decreased -8%, and International & other sales fell -5%.
Hormel’s gross margin in the quarter expanded +190 basis points from the year-ago to 16.7%.
For full fiscal year 2022, Hormel boosted its sales outlook to a range of $12.2 billion to $12.8 billion from prior guidance of $11.7 billion to $12.5 billion . The consensus is $12.45 billion.
The company cut its EPS outlook to $1.78 to $1.85, from previous forecast of $1.87 to $1.97. Analysts’ consensus is $1.88.
HRL sees MACD Histogram just turned negative
HRL saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 12, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on HRL as a result. In of 102 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
HRL moved below its 50-day moving average on May 15, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HRL crossed bearishly below the 50-day moving average on May 23, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HRL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HRL's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HRL advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
HRL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 213 cases where HRL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.751) is normal, around the industry mean (10.025). P/E Ratio (21.552) is within average values for comparable stocks, (34.816). Projected Growth (PEG Ratio) (3.127) is also within normal values, averaging (2.676). Dividend Yield (0.028) settles around the average of (0.057) among similar stocks. P/S Ratio (1.702) is also within normal values, averaging (7.242).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HRL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of meat products and other prepared foods
Industry FoodSpecialtyCandy
HRL and
Correlation & Price change
A.I.dvisor indicates that over the last year, HRL has been loosely correlated with CPB. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if HRL jumps, then CPB could also see price increases.
