NEW YORK - Hormel Foods Corporation (NYSE: NYSE:HRL) shares tumbled 5.46% after the food company reported third quarter revenue that fell short of analyst expectations, despite beating on earnings.
The Austin, Minnesota-based company posted adjusted earnings per share of $0.37 for the quarter ended July 28, edging past the consensus estimate of $0.36. However, revenue came in at $2.9 billion, missing analysts' projections of $2.96 billion.
Hormel's net sales declined 2.2% year-over-year, primarily due to lower volumes in its Retail segment and declines in its International business. The company cited production disruptions at its Suffolk, Virginia facility and lower sales of Planters snack nuts as factors impacting results.
"We delivered solid third-quarter results and another quarter of better-than-expected earnings," said Jim Snee, chairman, president and CEO of Hormel Foods. "Many of our key retail brands are growing, outperforming their categories and, most importantly, resonating with our customers and consumers."
For fiscal year 2024, Hormel narrowed its adjusted earnings guidance to $1.57-$1.63 per share, compared to its previous forecast of $1.55-$1.65. The company also lowered its full-year revenue outlook to $11.8-$12.1 billion from $12.2-$12.5 billion previously.
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