Hormel Foods (HRL, $48.15) beats fiscal Q4 earnings expectations; provides lower-than-expected revenue guidance
Hormel Foods reported fourth-quarter earnings that topped analysts’ expectations. However, the food company’s forecast for 2023 sales were lower than anticipated.
Diluted earnings for the quarter came in at 51 cents a share, vs. Wall Street analysts’ expectations of 50 cents a share. Net sales in the quarter were down -5% year-over-year to $3.3 billion, with organic net sales up +2%, excluding the impact of an additional week last year.
For the full fiscal year 2022, Hormel registered record net sales of $12.5 billion, up +9%; organic net sales having climbed 6%, excluding the partial-year impact of the Planters snack nuts business and an additional week last year..Diluted earnings per share were +10% up to $1.82.
For 2023, Hormel predicted $12.6 billion to $12.9 billion in net sales, while analysts expected $13.1 billion in net sales. “We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023,” CEO Jim Snee said. “We have benefited from our balanced business model, which is not heavily dependent on any one channel, protein, input or product category.”
HRL's Stochastic Oscillator is staying in oversold zone for 6 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 uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HRL advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 141 cases where HRL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 28, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on HRL as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HRL turned negative on April 25, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
HRL moved below its 50-day moving average on May 01, 2025 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 07, 2025. 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 .
HRL broke above its upper Bollinger Band on April 03, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 (2.443) is normal, around the industry mean (6.577). P/E Ratio (24.124) is within average values for comparable stocks, (27.155). Projected Growth (PEG Ratio) (3.051) is also within normal values, averaging (2.471). Dividend Yield (0.032) settles around the average of (0.043) among similar stocks. P/S Ratio (1.582) is also within normal values, averaging (68.169).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HRL’s price grows at a higher 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 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.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HRL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
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General Information
a manufacturer of meat products and other prepared foods
Industry FoodSpecialtyCandy