Hormel Foods’ stock soared by an impressive double-digit margin on Thursday after the company announced financial results that exceeded expectations, citing increased sales volumes across its various sectors.
Market Performance
Hormel emerged as the top-performing stock in the S&P 500, experiencing a remarkable 14% surge to reach $35.22. This marked its most significant percentage increase since Oct. 21, 1987, as reported by Dow Jones Market Data. In contrast, the broader market showed a modest uptick of 0.2%.
Financial Highlights
Hormel reported earnings of 41 cents per share on revenue totaling $3 billion. Analysts surveyed by FactSet had forecasted earnings of 34 cents per share on revenue amounting to $2.91 billion. Comparatively, in the same period the previous year, the company behind Spam and Skippy peanut butter had reported earnings of 40 cents per share on revenue of $2.97 billion.
CEO’s Statement
Jim Snee, Chief Executive Officer of Hormel, expressed optimism about the results, citing the substantial volume growth observed across their businesses. He attributed this growth to the strength of their prominent brands, robust demand for foodservice products, and the positive momentum within the Planters snack nuts sector.
Future Projections
Looking ahead to 2024, Hormel reiterated its sales forecast falling within the range of $12.2 billion to $12.5 billion.
Industry Comparison
While Hormel experienced a significant uptick in its stock value, other food stocks saw marginal declines on Thursday. General Mills decreased by 0.1%, Kraft Heinz dropped by 0.4%, and Conagra Brands fell by 0.5%.
Stay tuned for more updates on the food industry’s latest developments and financial performances.