Hormel Foods(HRL) ZACKS·2024-12-02 13:40Core Viewpoint - Hormel Foods Corporation (HRL) is expected to show bottom-line growth in its upcoming fourth-quarter fiscal 2024 earnings report, with earnings per share estimated at 43 cents, reflecting a 2.4% increase year-over-year, while total revenues are projected to decline by 1.9% to 1.58 per share, indicating a 1.9% decline from the previous year [1]. - The trailing four-quarter earnings surprise for HRL averages 6.3% [1]. - For fiscal 2024, HRL projects net sales between 12.1 billion, with adjusted earnings per share expected in the range of 1.63 [5]. Revenue Breakdown - The expected revenue for the Retail segment in the fiscal fourth quarter is 1,983.3 million in the prior year [4]. - The Foodservice segment is anticipated to see revenue growth, with estimates at 1,032.4 million year-over-year [6]. - The overall revenue for fiscal 2024 is projected at $11.9 billion, reflecting a 1.6% decline from the previous year [2]. Operational Challenges - Hormel Foods is facing production disruptions at its Planters facility in Suffolk, VA, which has affected its snack nuts portfolio and is expected to impact performance into the fourth quarter [3]. - The company is also dealing with challenges in the turkey commodity market and declining sales in its International segment, alongside ongoing softness in its contract manufacturing business [4]. Strategic Initiatives - The company is focusing on the Transform and Modernize initiative, which aims to enhance supply chain efficiency, optimize its portfolio, and leverage data and analytics [6].