Companies across the food sphere report earnings this time of year, so Food Dive breaks down the latest earnings news all in one place.
Hormel has guidance concerns as bird flu worries continue
Hormel Foods Corp. saw new heights in its latest earnings report, including record EPS of $0.67, up from $0.52 per share in last year's second quarter, and topping Zacks estimates.
Hormel also saw record dollar sales at $2.3 billion, for a 2% increase year over year, while volumes also increased 5% and total segment operating profit soared 29%. However, this fell below Zacks estimates around $2.4 billion.
However, the company believes its full-year earnings will come in at the lower end of the guidance previously reported due to mounting concerns over the bird flu, according to The Wall Street Journal/Market Watch..
Hormel's Jennie-O Turkey Store brand saw 15% sales growth, 14% volume growth, and a 41% leap in segment operating profits for the quarter.
However, these numbers can't necessarily last forever while millions of birds are killed due to the bird flu contamination that has ripped through the Midwest and threatens to continue to expand elsewhere in the country. Two weeks ago, Hormel announced temporary job cuts at a Jennie-O Turkey Store plant in Minnesota, one of the areas hardest hit by the bird flu outbreak.
Target revamp pays off in first quarter
Target Corp. Wednesday reported Q1 revenue rose to $17.12 billion, up 3% in the first quarter, and a 52% profit increase. Earnings were $1.10 per share, up $.70 year over year and handily beating expectations of $1.03 per share.
In addition to a revamp of its merchandising efforts, the retailer has significantly cut costs, closing all Target stores in Canada and beginning plans announced in March to lay off some 1,700 employees and leave some 1,400 open jobs unfilled.
The retailer raised its guidance for the year to $4.50 to $4.65 per share from its previous expectations of $4.45 to $4.65 per share and said its expects Q2 earnings of between $1.04 to $1.14 per share.
Target Corp. appears to be swiftly regaining some of its old groove, thanks to assertive cost cutting (not including its raise of hourly worker pay to $9 per hour) and a revamp of its food and apparel merchandising. Digital sales also grew 38%, according to CEO Brian Cornell.
"We like the initiatives Target has in place," Piper Jaffray retail analyst Sean Naughton said in a pre-report note.
The retailer is reportedly cutting back on processed food promotions as it continues its grocery shake-up efforts, according to the Wall Street Journal.
