Hormel Foods Corporation (NYSE:HRL) reported a Q4 fiscal 2024 EPS of $0.42, slightly below the estimated $0.43.
The company’s revenue was approximately $3.14 billion, with a gross profit increase to $521.2 million.
Hormel’s financial ratios such as the P/E ratio of 22.48 and a current ratio of 2.29 indicate its market position and liquidity strength.
Hormel Foods Corporation, listed on the NYSE under the symbol HRL, is a well-known player in the food industry, particularly in the meat products sector. The company recently reported its fourth-quarter fiscal 2024 earnings, revealing an earnings per share (EPS) of $0.42, slightly below the estimated $0.43. Hormel generated revenue of approximately $3.14 billion, just under the expected $3.14 billion.
During the earnings conference call on December 4, 2024, key figures from Hormel, including CEO Jim Snee and CFO Jacinth Smiley, discussed the company’s financial performance. Despite the slight miss in EPS, Hormel’s gross profit increased to $521.2 million from $514.4 million the previous year. However, net sales declined to $3.1 billion from $3.2 billion, with a 4.1% drop in volumes, as highlighted by Seeking Alpha.
The earnings call also featured questions from financial analysts from firms like Oppenheimer and JPMorgan. Hormel’s quarterly earnings of $0.42 per share matched the previous year’s performance but fell short of the Zacks Consensus Estimate, resulting in a negative surprise of 2.33%. In contrast, the company had exceeded expectations in the previous quarter with a positive surprise of 2.78%.
Hormel’s financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 22.48, indicating how the market values its earnings. Its price-to-sales ratio is about 1.46, and the enterprise value to sales ratio is around 1.66, reflecting its valuation relative to sales. Hormel’s debt-to-equity ratio of approximately 0.36 suggests a moderate level of debt compared to equity.
Despite the challenges, Hormel maintains a strong liquidity position with a current ratio of about 2.29, indicating its ability to cover short-term liabilities with short-term assets. The company’s earnings yield is approximately 4.45%, offering a perspective on the return on investment. These financial metrics highlight Hormel’s resilience in a competitive industry.
