Hormel Foods (NYSE:HRL) is a Minnesota-based company that is engaged in the development, processing, and distribution of various meat, nut, and other food products to retail, foodservice, deli, and commercial customers in the United States and around the world. Some of the top brands that Hormel owns include Chi-Chi’s, Stagg Chili, and Spam. Shares of Hormel Foods fell 9.71% on Thursday, May 30, 2024. Meanwhile, the stock has now dropped 6.13% in the year-to-date period. What is behind its recent fall?
The company released its second quarter (Q2) fiscal 2024 earnings on the same closing date. In Q2 FY2024, Hormel Foods reported volume of 1.06 billion pounds – down from 1.10 million pounds in Q2 FY2023. It reported net sales of $2.89 billion – down from $2.98 billion. It posted diluted net earnings per share of $0.34 compared to $0.40 EPS in the previous year. Hormel reported adjusted EPS of $0.38.
In the first half of fiscal 2024, Hormel Foods posted volume of 2.16 billion pounds which was comparable to the first two quarters of fiscal 2023. The company’s adjusted operating income was reported at $571 million and adjusted EPS of $0.79. Year-to-date cash flow from operations grew 55% year-over-year to $640 million.
This stock possesses a price-to-earnings ratio of 21 at the time of this writing, putting Hormel Foods in solid value territory. Moreover, it offers a quarterly dividend of $0.28 per share. That represents a 3.6% yield.