Hormel Foods (HRL) rose 2.0% to close at $35.31 per share during the third week of December 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.0%, 0.23%, and -9.3%, respectively, as of December 23.
HRL is trading 2.4% above its 20-day moving average, 1.8% below its 50-day moving average, and 5.1% 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 5.6% on December 23.
The market caps of Hormel Foods’ competitors are as follows:
Latest news on HRL
Don Gadsden has been appointed Hormel Foods International’s president of Asia-Pacific. Hormel Foods International is a division of Hormel Foods.
Hormel Foods’s performance in fiscal 4Q16
Hormel Foods (HRL) reported fiscal 4Q16 net sales of $2.6 billion, a rise of 9.5% compared to $2.4 billion in fiscal 4Q15. The company’s gross profit margin and operating margin expanded 220 basis points and 170 basis points, respectively, in fiscal 4Q16 compared to fiscal 4Q15.
HRL’s net income and EPS (earnings per share) rose to $243.9 million and $0.45, respectively, in fiscal 4Q16 compared to $187.2 million and $0.35, respectively, in fiscal 4Q15.
Fiscal 2016 results
In fiscal 2016, HRL reported net sales of $9.5 billion, a rise of 2.8% YoY (year-over-year). The company’s gross profit margin and operating margin expanded 320 basis points and 240 basis points, respectively, in fiscal 2016.
The company’s net income and EPS rose to $890.1 million and $1.64, respectively, in fiscal 2016 compared to $686.1 million and $1.27, respectively, in fiscal 2015.
Hormel’s cash and cash equivalents rose 19.6%, and its inventories fell 0.77% in fiscal 2016. Its current ratio rose to 1.9x, and its debt-to-equity ratio fell to 0.43x in fiscal 2016 compared to 1.7x and 0.53x, respectively, in fiscal 2015.
Hormel Foods expects EPS of $1.71–$1.77, or $1.68–$1.74 excluding ~$0.03 from its Farmer John divestiture in fiscal 2017.
Hormel Foods (HRL) 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.
In the next part of this series, we’ll look at B&G Foods (BGS).