Hormel Foods (HRL) has a market cap of $18.7 billion. It fell 1.8% to close at $34.94 per share on November 21, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -0.37%, -7.4%, and -10.3%, respectively, on the day.
HRL is trading 5.1% below its 20-day moving average, 5.9% below its 50-day moving average, and 8.4% below its 200-day moving average.
Related ETF and peers
The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.63% of its holdings in Hormel Foods. The YTD price movement of FSTA was 2.3% on November 21.
The market caps of Hormel Foods’ competitors are as follows:
Hormel Foods has declared a quarterly dividend of $0.17 per share on its common stock. The dividend will be paid on February 15, 2017, to shareholders of record at the close of business on January 17, 2017.
Latest news on Hormel Foods
In a press release on November 21, 2016, Hormel Foods reported, “Hormel Foods Corporation [HRL] today announced it has entered into a definitive agreement to sell Clougherty Packing, LLC, parent company of Farmer John and Saag’s Specialty Meats, along with PFFJ, LLC farm operations in California, Arizona, and Wyoming to Smithfield Foods, Inc. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close within 30 days.”
Performance in 3Q16
Hormel Foods reported 3Q16 net sales of $2.3 billion, a rise of 4.5% over the $2.2 billion it reported in 3Q15. Sales in 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 in its Specialty Foods segment fell 25.0% between 3Q15 and 3Q16.
Its net income and EPS (earnings per share) rose to $195.7 million and $0.36, respectively, in 3Q16, compared to $146.9 million and $0.27, respectively, in 3Q15. Hormel’s cash and cash equivalents and inventories rose 9.3% and 4.1%, respectively, between 4Q15 and 3Q16.
Hormel Foods reaffirmed the following projections at the Barclays Global Consumer Staples Conference:
- EPS of $1.60–$1.64 for 2016
- rises in the sales of its Skippy peanut butter products, Wholly Guacamole dips, and Muscle Milk protein in 4Q16
In the next article, we’ll discuss Autoliv (ALV).