Hormel Foods Corporation (HRL) has a market cap of $19.8 billion. It fell 1.4% to close at $37.33 per share on September 26. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.1%, -2.9%, and -4.5%, respectively, on the same day. HRL is trading 0.15% below its 20-day moving average, 0.43% above its 50-day moving average, and 3.2% below its 200-day moving average.
Related ETFs and peers
The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.63% of its holdings in Hormel Foods. The ETF tracks a market cap–weighted index of stocks in the US consumer staples sector. The YTD price movement of FSTA was 6.1% on September 26.
The SPDR S&P 500 ETF (SPY) invests 0.05% of its holdings in Hormel Foods. The ETF tracks a market cap–weighted index of US large- and mid-cap stocks selected by the S&P Committee.
The market caps of Hormel Foods’ competitors are as follows:
Hormel Foods declared dividend
Hormel Foods has declared a quarterly dividend of $0.145 per share on its common stock. The dividend will be paid on November 15, 2016, to shareholders of record at the close of business on October 24, 2016.
Performance in fiscal 3Q16
Hormel Foods reported fiscal 3Q16 net sales of $2.3 billion, a rise of 4.5% over $2.2 billion in fiscal 3Q15. Sales from its Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other segments rose 2.9%, 9.4%, 20.0%, and 5.2%, respectively. Sales from its Specialty Foods segment fell 25.0% between fiscal 3Q15 and fiscal 3Q16.
The company’s gross profit margin and operating income rose 10.4% and 18.9%, respectively, from fiscal 3Q15 to fiscal 3Q16. Its net income and EPS (earnings per share) rose to $195.7 million and $0.36, respectively, in fiscal 3Q16, compared to $146.9 million and $0.27, respectively, in fiscal 3Q15.
Hormel’s cash and cash equivalents and inventories rose 9.3% and 4.1%, respectively, from fiscal 4Q15 to fiscal 3Q16. Its current ratio rose to 1.8x, and its DE (debt-to-equity) ratio fell to 0.45x in fiscal 3Q16 compared to 1.7x and 0.53x, respectively, in fiscal 4Q15.
The company reaffirmed the following projections at the Barclays Global Consumer Staples Conference:
- EPS of $1.60–$1.64 per share for fiscal 2016
- a rise in sales for Skippy peanut butter products, Wholly Guacamole dips, and Muscle Milk protein for fiscal 4Q16
Board chair and CEO (chief executive officer) Jeffrey M. Ettinger “stated his confidence in the company’s ability to meet its growth goals of 5 percent top-line and 10 percent bottom-line in the years to come.”
Next, we’ll take a look at Oshkosh Corporation (OSK).